DigitalX Ltd (ASX:DCC) (OTCMKTS:DGGXF) has secured commitments from new US institutional investors for an A$8.8 million placement which will fund growth initiatives.
The company is engaged across the financial and regulatory aspects of the digital asset ecosystem through its fund management division together with its newly announced RegTech product, Drawbridge.
Proceeds from the placement will be used to accelerate business growth, including the ongoing promotion of its Bitcoin and digital asset investment funds and the rollout of Drawbridge for publicly traded companies.
“Appropriate time to raise funds”
DigitalX executive director Leigh Travers said: “With tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the funds management division, the company believes it is an appropriate time to raise additional funds to accelerate the business.
“This growth capital placement was strongly supported by the US institutions which are pleasing given the performance of the US-based equities in the Bitcoin and digital asset sector.
“We believe that these additional funds will allow us to expedite a number of initiatives identified in our recent strategic review across the digital asset funds management business as well as for our RegTech business led by Drawbridge.”
Placement details
US investment bank, H.C. Wainwright & Co, acted as the exclusive placement agent for the capital raise.
The company plans to issue 97.9 million new fully paid ordinary shares at a price of A$0.09 per share, representing a 2% discount to the volume-weighted average price (VWAP) over the previous five trading days on the ASX.
The company will also issue to the investors 48,981,582 warrants, exercisable at an exercise price of 10 cents each, representing approximately 111% of the placement issue price per new share.