Online Blockchain raises £1M via share placing with ETX Capital
Online Blockchain PLC (LON:OBC) announces that it has raised £1.0 million (before expenses) through a placing of 2,717,391 new Ordinary Shares with Monecor (London) Limited trading as ETX Capital. The placing price was 36.8p per share.
The proceeds of the placing will be used to fund additional new projects as well as enhance the deployment of Umbria and support its existing crypto and blockchain-based products and are anticipated to satisfy the Company’s current working capital and development needs for at least 12 months.
Online Blockchain has entered into a placing agreement dated 1 February 2021with Monecor, pursuant to which Monecor, as agent for the company, has subscribed for the Placing Shares at the Placing Price. The obligations of Monecor under the Placing Agreement are conditional, inter alia, upon admission of the Placing Shares having occurred by 8.00 a.m. on 8 February 2021 (or such later time and/or date as may be agreed, being no later than 8.00 a.m. on 28 February 2021), and there being no material breach of the warranties given to prior to admission of the Placing Shares.
Online Blockchain has conditionally agreed to issue participants in the Placing, one warrant for every two Placing Shares. As a result, 1,358,695 Placing Warrants will be conditionally issued to placees pursuant to the Placing.
In conjunction with the Placing, the Company has agreed to issue Monecor 100,000 warrants, exercisable in whole or in part at 36.8p per new Ordinary Share within 2 years of being issued.
On December 31, 2020, Online Blockchain published a TR-1 provided by Monecor in which Monecor disclosed an interest in Online Blockchain of 12.03%. Although Monecor subsequently reduced its holding in Online Blockchain, as announced on January 26, 2021, to below 10%, Monecor is a related party for the purposes of AIM Rule 13 as it has been a substantial shareholder within the prior 12-month period.
The Directors of Online Blockchain consider, having consulted with the company’s Nominated Adviser and having taken market soundings, that the terms of the Placing are fair and reasonable insofar as Online Blockchain’s shareholders are concerned.
Let’s recall that, as FNG reported, in December 2020, Online Blockchain raised £0.4 million before expenses by way of a placing of 1,818,181 new Ordinary Shares through ETX Capital at a placing price of 22p per share.