The Smarter Web Company (AQSE:SWC) has signed a deal that could see it issue up to 21 million new shares worth over £87 million, giving it the flexibility to raise capital in stages as it pursues a mix of organic growth and acquisitions.
The agreement, signed with Shard Merchant Capital, gives Shard the ability to place the shares with investors over time, subject to certain conditions, including price floors and daily trading limits.
The Bitcoin treasury specialist on Thursday issued the first tranche of 7 million new shares, worth £29 million, at par value, with the remaining 14 million to be released later, depending on market conditions and demand.
The shares, which are listed on London’s Aquis Stock Exchange and the US OTCQB market, closed at 415p on Monday. The subscription structure allows the company to retain around 97% of the net proceeds raised, after fees.
Earlier this week, the group banked just under £30 million in more traditional fashion (via a subscription and bookbuild), funds it will use to acquire and hold Bitcoin. To date, it has bought £27 million worth of the cryptocurrency, which it will hold as an investment.
In a separate announcement, Hot Rocks Investments said it has increased its exposure to SMC by acquiring a further 100,000 warrants, deepening its bet on the latter's growth strategy.
The warrants, bought at £1 each, give Hot Rocks the right to subscribe for new shares in SMC at 2.5p apiece.
They can be exercised starting 12 months after the company’s listing on the Aquis Stock Exchange and remain valid for a further two years.
This latest purchase brings Hot Rocks’ total holding in SWC warrants to 160,000. The investment is being funded from the company’s existing treasury.
A third filing reveals that SMC founder Andrew Webley's stake in the business has been diluted down to 12.42% from 13.41%. At today's prices, the holding is worth almost £114 million.