LONDON - Valereum Plc (AQSE: VLRM), a blockchain company, has entered into a non-binding agreement with DMC Markets, Inc. to raise £13 million through the issuance of new shares. This move is aimed at expanding Valereum's digital asset services and global presence.
The proposed capital injection involves the conditional allotment of 130 million new ordinary shares at £0.10 each to DMC shareholders, representing an approximate 43% stake in Valereum upon completion. Additionally, DMC will nominate one member to the company's Board of Directors.
The funds are earmarked for working capital and minority investments in three strategic digital asset companies, which Valereum expects will enhance its market reach across various continents, including Australasia and the Americas. The investments are intended to foster innovation in Web 3 technologies, decentralized finance, and blockchain, with the goal of driving long-term growth.
Completion of the transaction is subject to due diligence and the execution of legally binding agreements, anticipated by January 2025. Both parties have agreed to a 12-month lock-up period for certain shares post-completion, with conditional trading allowed after six months.
Valereum's CEO, Nick Cowan, expressed optimism about the partnership with DMC, highlighting the alignment of visions and the potential for accelerated business expansion. DMC's Chairman, Angus Mackenzie, echoed these sentiments, emphasizing the timely nature of the partnership amidst the evolving digital landscape.
The company has also announced the exercise of warrants by a holder for 1 million new ordinary shares at £0.01 each. These shares are expected to be admitted to trading on the AQSE Growth Market around December 20, 2024, bringing the total number of shares in issue to 172,332,349.
Valereum's Board believes this proposed transaction, along with further investments, will benefit shareholders and stakeholders alike. The company has committed to providing updates as the deal progresses. This article is based on a press release statement.
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