4 July 2017
COINSILIUM GROUP LIMITED
(“Coinsilium” or the “Company”)
Proposed Disposal of Interest in Investee Company
Coinsilium Group Limited (NEX: COIN), the accelerator that finances and manages the development of early-stage blockchain technology companies, is pleased to announce that its wholly-owned subsidiary Seedcoin Limited (“Seedcoin”) has entered into a conditional agreement with Blue Star Capital Plc (“Blue Star”) to sell its entire holding of 2,133 shares in investee company SatoshiPay Ltd (“SatoshiPay”) at the price of €340 per share for a total consideration in cash of €725,220 and representing an increase of 362.6% compared to the price paid for these shares in 2015.
The disposal is conditional on Blue Star raising approximately £650,000 through a proposed placing, which will be used together with Blue Star’s existing cash resources to satisfy the consideration payable to the Company. Blue Star has raised £650,000, conditional, upon passing certain Blue Star resolutions, for which, notice of General Meeting is being posted to Blue Star shareholders today.
Blue Star has also agreed, conditional on completion of the transaction, to grant Coinsilium 85 million warrants over new Ordinary Shares of Blue Star, of which 42.5 million are exerciseable at a price of 0.6 pence per Ordinary Share (representing a premium of 200% in comparison to the Placing Price) and 42.5 million are exerciseable at a price of 0.8 pence per share for a 3-year period from completion of the acquisition (together the “Seller Warrants”). The Seller Warrants are also conditional on certain resolution being passed at the Blue Star General Meeting.
Details of proposed disposal
On 4 July 2017, the Company and Blue Star entered into a sale and purchase agreement ("SPA") under the terms of which Blue Star has agreed to purchase all of the Company’s 2,133 shares in SatoshiPay for a total consideration of €725,220 (approximately £636,344) in cash, equivalent to a price of €340 per SatoshiPay share which is the price per share at which SatoshiPay raised €1.0million earlier this year. If completed, the disposal would result in Blue Star holding 31.1% of the capital of SatoshiPay. The sale of the Company's interest in SatoshiPay at a price of €340 per share represents an increase of 362.6% in value since the time of the Company's original investment in 2015.
Eddy Travia, Coinsilium CEO of Coinsilium, commented: “We are pleased to announce the successful exit of one of our investments less than two years after its initiation and at a significant multiple over its original cost.
“In this regard SatoshiPay has proven to be an outstanding investment for Coinsilium and with the inclusion of 85million ‘Seller Warrants’ in the proposed transaction we continue to maintain a substantial degree of upside exposure to the future success of SatoshiPay.”
Additionally, this transaction is particularly well timed for the Company as the proceeds from the sale will put us in an enviable position as we look to finance a range of exciting new projects and investments in the next wave of blockchain applications and the emerging Token Economy.”
The Directors of Coinsilium Group Limited take responsibility for this announcement.
For further information, please contact:
Eddy Travia, CEO +44 (0) 207 099 0740
Coinsilium Group Limited
Malcolm Palle, Non-executive Director +44 (0) 7785 381089
Coinsilium Group Limited
Harry Chathli / Ana Ribeiro / Alexis Gore +44 (0) 207 618 9100
Luther Pendragon Ltd
Guy Miller / Mark Anwyl +44 (0) 207 469 0930
Peterhouse Corporate Finance Limited
(NEX Exchange Corporate Adviser)
Nick Emerson / Andy Thacker +44 (0) 1483 413 500
SI Capital Limited
Notes to Editor
Coinsilium is an accelerator that finances and manages the development of early-stage blockchain technology companies. It does this through its consortium of top-tier investors, industry thought leaders and executive managers. Based in London, Coinsilium’s focus is on driving innovation in fintech and blockchain technologies, enabling businesses to take advantage of growth opportunities.
Coinsilium shares are traded on NEX Exchange Growth Market, the primary market for unlisted securities operated by NEX Exchange, a Recognised Investment Exchange under the Financial Services and Markets Act 2000.
For further information, please visit http://www.coinsilium.com