DigitalX Limited (ASX: DCC) is involved in the operations of blockchain and crypto-asset financing with offices in Perth, Sydney and New York. Several advisory services for new token offerings and asset management focused on the technology are offered by the company, including blockchain and crypto assets, blockchain development and media services.
The company today, on 30th April 2019, provided the report on activities completed during the quarter ended 31st March 2019. The working capital position of the company revealed that the company had cash, listed digital assets and fund units of ~US$5.77 million in value at the end of the quarter. The company noted the post quarter end ASX announcement on 16th April 2019, regarding the A$2 million underwritten Share Purchase Plan and the significant increase in the price of Bitcoin post the quarter end. It offers advisory services related to new token offerings and the asset management focused on technology.
On the business activities front, the company continued to provide advisory assistance on Initial Coin Offering during the quarter to its clients, including Bankorus, Bamboo and Human Protocol. The group has been working on creating the infrastructure of offers towards Security Token Offerings as the market matures.
The company made decent progress on establishing a network of advisors and professional services in Malta to capitalise on this market. Malta has the highest crypto-asset exchange trading volumes currently. DigitalX is continuing to undertake rigorous due diligence on applying for a Virtual Financial Asset license through the Malta Financial Services Authority (MFSA) for taking advantage of the crypto-assets opportunities in the region.
The company believes that it is well positioned to add significant value to the market through its blockchain technical expertise, the marketing team at Coincast Media and investment network. Some of the major crypto-asset exchanges have started Initial Coin Offering directly to their user base in a process known as an Initial Exchange Offering.
DigitalX continues to review the STO marketplace through its business as well as DX Americas in the United States.
On the corporate overview front, the company announced a Share Purchase Plan at the end of the quarter to raise A$2 million (before costs). The plan will be underwritten to A$2 million by Patersons Securities Limited, which is acting as Lead Manager and Underwriter to the offer. Eligible shareholders can purchase fully paid ordinary shares worth up to A$15,000 in the company.
The company did extend the original proposed closing date of the Share Purchase Plan as per the timetable lodged with the ASX on 16th April 2019. The proposed closing date of the SPP is Friday, 10 May 2019.
The company, in the recent past, has announced that it will acquire approximately 17.5% interest in Bullion Asset Management Services Pte Ltd, a company incorporated and operating in Singapore that is creating a gold backed cryptocurrency stablecoin called XGold.
On the price-performance front, the stock of DigitalX Limited was trading at $0.060, with a market capitalisation of $31.16 million (on 30 April 2019, AEST 03:30 PM). The stock has generated a YTD return of 17.31%, with returns of -7.58%, 38.64% and 35.56% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.220, and 52-week low price at $0.043, with an average trading volume of ~3.88 million.
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