Australian firm will use the capital to further invest in blockchain technology, assets, or businesses
Australia-listed investment firm First Growth Funds seeks to raise up to A$3.5 million ($2.7 million) to be used as additional working capital or to acquire or invest in blockchain technology, assets, or businesses
First Growth Funds intends on using the majority of funds from a $3.45 million placement to seek Blockchain related investment opportunities.
FGF has agreed to issue 282,257,907 shares at A$0.012237 each, pending the approval of its shareholders and all other regulatory bodies or the ASX on or before February 28, 2018.
The key investor will be Blockchain Global, which will provide First Growth with a strategic deal flow for Blockchain related investments.
Blockchain Global will also underwrite half of the company’s February 2018 options with an underwritten exercise price of up to $4.3 million.
The placement will launch the company into investments in Blockchain technology, assets or businesses.
Once the share placement is complete, Blockchain Global will assist First Growth in establishing a blockchain centre in South Australia and provide a licence and a staff member. Blockchain Global will also provide First Growth access to is deal flow pipeline throughout Australia and the world.
Additionally, upon achieving certain milestones, First Growth will issue Blockchain Global further share placements amounting to 60 million. Blockchain Global will also have the right to appoint a non-executive director to First Growth’s board.
Blockchain Global is a global pure-play Blockchain technology commercialisation and investment company.
Founded in 2014, the company’s investments have ensured year-on-year profitability.
Blockchain Global and strategic investors recently acquired a 40% interest in DigitalX, the world’s first listed Blockchain company.
First Growth Funds manages a portfolio of investments covering small and medium companies listed on the Australian Securities Exchange or seeking investment ahead of an initial public offering.