Valereum Blockchain PLC (LON:VLRM) said it has raised around £1mln in a share placing to fund the development of “The Valereum Bridge”, a non-fungible token (NFT) bespoke securities financial platform designed to “link the fiat currency and crypto worlds”.
The blockchain technology group said it raised the funds through the private placement to strategic existing shareholders of around 1.43mln new shares at a price of 70p each, a 1.8% discount to its closing price last Friday.
Valereum also said it will grant investors a warrant to subscribe for one new share in the firm for every two shares subscribed in the placing exercisable for two years from admission of the placing shares at a strike price of 80p each. The warrants also have an accelerator clause whereby if the company’s shares close above 80p for five trading days during any 10-day trading period, the firm has the right to require warrant holders to exercise all warrants held by them within seven days.
"We have raised this small amount, at the current market price, from strategic current shareholders, to cover the costs of rolling out the next stage of The Valereum Bridge. We are working closely with Mattereum to refine the structure and protocols of the NFTs to ensure total security for when the launch occurs on the crypto networks,” chairman Richard Poulden said in a statement.
"We have noted the volatility of the Bitcoin price in recent weeks but remain supporters of cryptocurrency mining and see a bright future for this part of the company's business. Valereum's bitcoin miners are working well and profitably in the US and we continue to evaluate new opportunities to expand our BTC mining operations in a diversified way," he added.