Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF) said its stake in portfolio company Greengage Global is now valued at over £0.6mln after the conversion of a loan note and a contribution to its latest funding round, up over 25% on its original investment.
UK-based Greengage raised a total of £1mln in the first tranche of its £5mln fundraise, at a valuation of £30mln or £24.05 per share.
A £200,000 convertible loan note made by Coinsilium in 2021 to the UK e-money account services provider has now been converted, including interest.
On top of that Coinsilium said it has made a £25,000 follow-on investment as part of Greengage’s latest funding round.
Its total shareholdings in Greengage will increase to 27,133 A Shares as of today, valuing the stake at £652,550, with 8,370 warrants on top, compared to its initial £500,000 in September 2021.
Coinsilium executive chairman Malcolm Palle said the current funding round comes in at a valuation 9.9% higher than Coinsilium’s initial entry point “and thereby significantly de-risks our investment,” he said.
The company also noted that the current funding valuation results in a 25.51% increase in the value of Coinsilium’s initial £500,000 stake in Greengage, based on the portfolio company's new valuation, compounded with the terms of the loan notes, which convert at a discount of 20% to the share price at the time of conversion and the accrual of interest on the principal loan amount at 5%.
Palle hailed “solid progress” being made at Greengage since the investment in 2021, despite the challenging market conditions.
He noted that Greengage has recently launched its e-money account services and the startup's team are “continuing to hit their milestones and delivering on their strategy for rolling out their much in demand payment solutions to the burgeoning global digital asset industry.
“And with this first tranche of funding in place, Greengage can now focus on their mission of scaling up and building value in the business.”
Coinsilium will receive 11,094 Greengage A ordinary shares and 7,510 warrants after the conversion of loan notes, which convert at 20% discount to the new valuation, with the follow-on investment adding another 1,039 A Shares and 860 warrants.