Quantum Blockchain Technologies PLC (AIM:QBT) has raised £2 million (before expenses) through a placing of shares at 1.5p per share.
Proceeds of the placing will be used by Quantum to pursue its research and development programme through additional hires, new hardware and an increase in software development.
Funds will also be allocated towards the company’s ongoing legal claims in relation to legacy investments and provide general working capital.
“We are extremely pleased to have completed this £2 million fundraise, as we believe it will fund the company through to revenue,” Francesco Gardin, Quantum’s chief executive and executive chairman, commented.
Gardin stated that the placing will provide the group with the opportunity to set up its cloud service infrastructure, most likely in North America, to enable the deployment of its Method A and Method B as a SaaS product for the bitcoin mining market.
“We predict revenue will be generated either by charging subscription fees for each mining rig served, or by sharing the extra mined bitcoins, as a result of the miner using QBT’s technology, or a combination of the two.
“We therefore believe that this opportunity significantly outweighs any short-term effect caused by the additional shareholder dilution.”
The shares are expected to be admitted on AIM on or around 2 November, after which Quantum’s enlarged share capital will comprise 1.29 billion shares at a nominal value of 0.25p.