DigitalX, an Australia-based blockchain software solutions group, announced that it has entered into a subscription agreement as well as converting loan agreement with Blockchain Global Limited (BGL) in order to invest $4.35 million approx.
The funding would be at 2.7 cents per share in order to acquire an interest in approx. 40% of DigitalX on a complete diluted basis. Also, the announcement said that the investment is conditional on the satisfaction of certain conditions precedent.
“DigitalX welcomes BGL as an investor in the company, and appreciates the confidence it has shown in DigitalX’s growth and understanding within the blockchain ecosystem,” Leigh Travers, CEO of DigitalX, stated. “With a stronger balance sheet and additional blockchain expertise, I am confident that we can deliver value for all shareholders going forward.”
Under the terms of agreement, DigitalX has received AUD$300,000 by way of a convertible note loan in bitcoin digital currency. This loan is convertible into shares of DigitalX, which is subject to the receipt of shareholder approval. Also, the agreement will allow BGL to subscribe for or procure subscribers for shares, convertible notes and options in DigitalX for up to a further $4.05 million.
By demonstrating long-term shareholder commitment, BTL will escrow voluntarily, their shareholding for a period of 12 months from the date of issue. In order to offer additional industry expertise, BGL can appoint two Directors to the DCC Board.
Being a major player in the blockchain industry by supporting bitcoin mining, software and consultancy services, BGL recently supported crowd-sourced blockchain token sales and Initial Coin Offerings (ICO’s).
