DIGITALX LIMITED
21 May 2015
• DCC completes a strongly oversubscribed $3.5m placement at 22 cents per share
• Positions DCC on a strong path for rapid growth of the AirPocket product in the
+$500 billion remittance market
• Placement brings sophisticated capital from U.S and Australian investors
• Corner-stoned by U.S fund
• Enables the Company to accelerate the roll out and commercialization of
AirPocket in the Latin American and Caribbean markets
• DCC now has strong financing in place - $6 million, including cash reserves and readily exchangeable Bitcoins
Digital payments company Digital CC Limited (trading as digitalBTC, ASX:DCC and 'the Company") is pleased to announce it has successfully raised $3.5 million via a placement to institutional and sophisticated investors in the U.S and Australia.
The placement of 15.9 million ordinary shares was completed at $0.22 per share to raise
$3.5 million and the shares are expected to be quoted on the ASX on Thursday 28 May
2015. Patersons Securities acted as lead manager and sole book runner.
The raising was corner-stoned by a leading U.S fund and closed significantly over- subscribed, demonstrating the wide appeal and potential of the AirPocket platform to significantly disrupt the global remittance market.
The $3.5 million raised has increased the Company's cash and equivalents to $6 million. The proceeds of the raising will be used to accelerate the strategic joint venture approach, marketing and user acquisition in the Latin American and Caribbean markets ahead of the upcoming launch of AirPocket.
The Company's strategy to aggressively roll out the AirPocket product is progressing well with the recently signed agreement to establish a Special Purpose Vehicle with American based partners who will own 25% equity in the vehicle, to facilitate the AirPocket roll out throughout Latin America and the Caribbean.
digitalBTC intends to establish further partnerships in other key geographic markets with the objective of achieving commercial agreements with large corporations for the promotion and roll out of AirPocket. It is expected that the funds raised in this placement will contribute to funding the establishment of such partnerships.
Zhenya Tsvetnenko, Executive Chairman, digitalBTC commented:
"We're delighted to have received such strong support from both domestic and international investors and this placement is clear validation of our strategy to disrupt the global and established remittance market. The funds raised will support our aggressive marketing and sales strategy, initially in the Latin American and Caribbean regions and later into the Asian market."
The Beta launch of AirPocket is set for June 2015, with the commercial launch scheduled for Q4 2015.
The product is targeting a global remittance market estimated to be worth US$583 billion in 2014 and the launch of Air Pocket into the Latin American and U.S markets opens up a potential US$84 billion market opportunity.
AirPocket's competitive advantage is its ability to leverage the existing Blockchain technology, which is already deployed in its other products and its low infrastructure costs enables it to provide an alternative service to compete with existing high cost vendors.
Ends
For further information please contact:
digitalBTC
Zhenya Tsvetnenko Executive Chairman T: +61 8 9389 2000
Alex Karis
Chief Executive Officer
T: +1 (617) 544 3150
Media
Media & Capital Partners
Asher Moses
Director
+61 438 008 616
Asher.moses@mcpartners.com.au
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