Digitalx : Minority Holder Sale

11 August 2017

DigitalX Ltd (Company or DCC) advises that, in accordance with its Constitution, it intends to undertake a minority holder share sale of parcels of shares with a market value of less than $500 (Minority Holder Sale).

Under the ASX Listing Rules, a 'marketable parcel' is a parcel of shares with a market value of not less than $500. 'Minority holders' under the Company's Constitution, are shareholders who, from time to time, hold a less than marketable parcel as defined in the Listing Rules (Minority Holder).

In accordance with the Constitution, the Company will be issuing a notice (Minority Holder Notice) to all Minority Holders on the register as at the Record Date, as determined by the Company. Minority Holders will have 42 days from the date of that Minority Holder Notice to notify the Company that they do not wish their shares to be included in the Minority Holder Sale. After the expiry of the 42 day period (Sale Date), the shares of all Minority Holders who have been sent a Minority Holder Notice and who have not provided notice of their wish to retain their shares, will be transferred to the Company for the arrangement of sale, through its agent, in the ordinary course on the ASX. Where on the Sale Date a parcel of shares held by a recipient of a Minority Holder Notice is a marketable parcel, those shares will be excluded from the Minority Holder Sale.

The Company will pay for all costs associated with sale of shares under the Minority Holder Sale, excluding any tax consequences from the sale, which remain the shareholder's responsibility.

The Company values all its shareholders, however it incurs significant administration costs maintaining such a large number of less than marketable parcels of shares. Through the Minority Holder Sale, the Company expects to reduce the administrative costs associated with maintaining a large number of very small holdings.

If recipients of a Minority Holder Notice wish to sell their shares through the Minority Holder Sale, they do not need to take any action. If Minority Holders do not wish to sell their shares through this Minority Holder Sale, they must complete and return the Notice of Retention Form to the Company's share registry, Computershare Investor Services Limited, by the Retention Date. Minority holders are also welcome to purchase additional shares in the Company to bring their parcel of shares in the Company up to a marketable parcel, or may also sell their holding on ASX at any time (and be responsible for any brokerage and other costs applicable).

The amount received by a Minority Holder from the Minority Holder Sale will be determined once all the shares under the Minority Holder Sale are sold and Minority Holders will receive a proportionate share of the sale proceeds (without any deduction for brokerage or handling costs). The Company's Constitution provides that the shares will be sold in the ordinary course of trading on the stock market operated by the ASX.

An indicative timetable of the key dates in relation to the Minority Holder Sale is as follows:

The Company reserves the right to vary this timetable, in accordance with the ASX Listing Rules and the Company's Constitution.

The letter to Minority Holders as at the Record Date, including an Information Booklet and a Notice of Retention Form is expected to be despatched to Shareholders on Thursday, 17 August 2017.

-Ends-

Leigh Travers

Chief Executive Officer leigh@digitalx.com

T: +61 439 376 847

DigitalX is a Blockchain Technology Company based out of Perth and New York. Partners can use DigitalX's Blockchain technology expertise to deliver innovative products to global markets.