Coinsilium Group Limited, the London, UK-based accelerator that funds and oversees the development of initial-stage blockchain technology firms, announced in a press release CoinReport received that its wholly-owned subsidiary, Seedcoin Limited, has entered into a tentative contract with Blue Star Capital Plc to sell all of its 2,133 shares in investee company SatoshiPay Ltd. at the price of €340 per share for an entire consideration in cash of €725,220 (approx. £636,344) and indicating a gain of 362.6% in comparison to the price paid for these shares in 2015.
The selling of shares is contingent upon Blue Star securing about £650,000 through an advised placing, which will be used in conjunction with the present cash resources of Blue Star to meet the consideration payable to the Company.
Blue Star has raised conditional £650,000 upon passing specific Blue Star resolutions, for which notice of General Meeting has been posted to the shareholders of Blue Star.
Depending upon the completion of the transaction, Blue Star has also consented to provide Coinsilium 85 million warrants over Blue Star’s new Ordinary Shares, of which 42.5 million are exercisable at a price of 0.6 pence per Ordinary Share (indicating a premium of 200% compared to the Placing Price) and 42.5 million are exercisable at a price of 0.8 pence per share for a three-year period from the completion of the acquisition (with the “Seller Warrants”). The Warrants are also dependent upon specific resolution being passed at the General Meeting.
Upon the successful completion of the disposal, Blude Star will be holding 31.1% of the capital of SatoshiPay.
“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,” said Coinsilium CEO Eddy Travia. “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.”
He added, “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.”
In another press release CoinReport received from Coinsilium, the company announced it had entered into an Option Agreement to subscribe to 7% of the fully diluted share capital of Singapore-based blockchain-powered decentralized network company Indorse for a total of SGD350,000. The agreement is valid for a three-month term, and if fully exercised, Coinsilium would have the right to appoint an individual to the board of Indorse.
On June 8, Coinsilium announced an investment of SGD100,000 (approximately £56,100) in Indorse through a Convertible Loan Agreement and received an undisclosed number of Indorse digital tokens as part of this agreement. Should the company choose to fully exercise the Option Agreement and fully covert the Convertible Loan Agreement, its equity position in Indorse would be approximately 10%.
Threadneedle Street – Public domain image by Wjfox2005
Coinsilium logo – Via their Press Kit