Online Blockchain (LON: OBC) shares have plummeted on Tuesday after the company announced it has raised £1 million by the placing of 2.71 million new ordinary shares priced at 36.8p per share.
Online Blockchain’s stock price is down 10.38%, priced at 41.2p per share.
The placing was conducted via Monecor Limited, trading as ETX Capital, who hold a less than 10% stake in OBC.
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The company said the proceeds will be used to fund additional new projects and the enhancement and deployment of Umbria and support its existing crypto and blockchain-based products. Funds raised are also anticipated to satisfy the company’s current working capital and development needs for the next 12-months.
“We are very pleased to have received further support at this moment of high interest in Blockchain and DeFi (Decentralised Finance) projects. As previously reported, we hope to start beta-testing our new development project in decentralised finance, Umbria, in the first quarter of 2021,” said Clem Chambers, Online Blockchain’s CEO.
“These additional funds will allow us to initiate development on further projects at this opportune moment and we look forward to updating shareholders in due course,” Chambers added.
The company also conditionally agreed to issue participants in the placing one warrant for every two placing shares. As a result, 1.35 million placing warrants will be conditionally issued to placees.
Each placing warrant allows the holder the right to subscribe for one new ordinary share on its exercise with the warrant exercisable at a price of 60p for two years from the date of admission of the placing shares.