TIDMOBC

RNS Number : 0891J

Online Blockchain PLC

18 December 2020

18 December 2020

Online Blockchain PLC

("Online" or the "Company")

Issue of equity

Online Blockchain plc (LSE: OBC) announces that the Company has today raised GBP0.4 million (before expenses) by way of a placing of 1,818,181 new Ordinary Shares ("Placing Shares") through Monecor (London) Limited trading as ETX Capital ("Monecor") at a placing price of 22p per share (the "Placing Price") (the "Placing"). In completing the Placing, the Board has utilised the share authorities approved by shareholders at the last Annual General Meeting.

The proceeds of the Placing will be used to fund the continuing development and the upcoming launches by Online of its existing crypto and blockchain-based products (which as previously reported are in the early stages of development) and to consider new opportunities in the cryptocurrency, blockchain and decentralised finance (Defi) space and for general working capital purposes.

Placing Agreement

The Company has entered into a placing agreement dated 17 December 2020 (the "Placing Agreement") with Monecor, pursuant to which Monecor, as agent for the Company, has procured placees for the Placing Shares at the Placing Price. The obligations of Monecor under the Placing Agreement are conditional, inter alia, upon admission of the Placing Shares having occurred by 8.00 a.m. on 24 December 2020 (or such later time and/or date as may be agreed, being no later than 8.00 a.m. on 22 January 2021), and there being no material breach of the warranties given to prior to admission of the Placing Shares.

Monecor may terminate the Placing Agreement in specified circumstances (including for breach of warranty at any time prior to admission of the Placing Shares, if such breach is reasonably considered by Monecor to be material in the context of the Placing) and in the event of a force majeure event occurring at any time prior to admission of the Placing Shares.

Clem Chambers CEO has commented, "We are very pleased to have received support at a time when there is renewed interest in Blockchain. Freefaucet.io ( www.freefaucet.io ) continues to make progress, and now has 110,858 registered users and continues to grow with a current average of just over 1,000 new registrations per week. We are at early stages of developing a crypto protocol and, as well as our other projects, the company continues to focus on developing new projects in the decentralised finance (DeFi) area, which the Directors believe is the next phase of development of Blockchain. We look forward to updating Shareholders on our developments in due course".

Warrants

The Company will issue participants in the Placing, one warrant for every two Placing Share (the "Warrants"). As a result, 909,090 Warrants will be issued to placees pursuant to the Placing.

Each Warrant will provide the holder the right to one new Ordinary Share on its exercise. The Warrants will be exercisable at a price of 32p for a two-year period from the date of admission of the Placing Shares. If exercised in full, the Warrants would result in the issue of a further 909,090 new Ordinary Shares.

In conjunction with the Placing, the Company has agreed to issue Monecor 100,000 warrants, and Beaumont Cornish 50,000 warrants, exercisable in whole or in part at 22p per new Ordinary Share within 2 years of being issued.

Admission to AIM

Application will be made for admission of the Placing Shares, amounting to 1,818,181 new Ordinary Shares, to trading on AIM ("Admission") on or around 24 December 2020. The Placing Shares will rank pari passu in all respects with the Company's existing issued ordinary shares.

Total Voting Rights

On Admission of the New Shares, the Company will have 10,480,529 Ordinary Shares in issue with voting rights. Online Blockchain Plc does not currently hold any shares in treasury. Accordingly, this figure of 10,480,529 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Broker Appointment

The Company has appointed Monecor (London) Limited as joint broker to the Company with immediate effect.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person who arranged for the release of this announcement on behalf of the Company was Clement Chambers, Director.

Enquiries:

For further information please contact:

 
Online Blockchain PLC 
 Clement Chambers                               +44 20 3868 6702 
 
Beaumont Cornish Limited (Nominated Adviser) 
 www.beaumontcornish.com                       +44 (0) 207 628 3396 
Roland Cornish/Michael Cornish 
Throgmorton Street Capital (Joint Broker)      +44 (0)203 0112 309 
Monecor (London) Ltd (Joint Broker) 
 E lliot Hance                                 +44 (0)207 392 1436 
 
Cassiopeia Ltd (Investor Relations)            stefania@cassiopeia-ltd.com 
 Stefania Barbaglio 
 

About Online Blockchain plc (LSE: OBC)

Online Blockchain ( www.onlineblockchain.io ) is a UK-based incubator and developer of businesses in internet and information-based technologies, including developers, administrators and custodians of blockchains and cryptocurrencies. The Company created ADVFN www.advfn.com and has a holding of 17.98% in ADVFN plc.

Online Blockchain plc continues to consider new related opportunities and particularly crypto currencies and blockchain-based opportunities including incubating cryptocurrency start-ups and developing technical innovation in the blockchain space.

Glossary

"blockchain" is a distributed public digital ledger in which transactions are recorded chronologically

"cryptocurrency" is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of any central bank

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward looking statements. Forward looking statements are identi ed by their use of terms and phrases such as "believe" "could" "should" "envisage" "estimate" "intend" "may" "plan" "will" or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward looking statements.

Note:

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the FCA, is acting as Nominated Adviser ("Nomad") to the Company in connection with the matters set out in this announcement and will not be acting for any other person or otherwise be responsible to any person for providing the protections afforded to clients of Beaumont Cornish or for advising any other person in respect of the matters set out in this announcement or any transaction, matter or arrangement referred to in this announcement. Beaumont Cornish's responsibilities as the Company's Nomad are owed solely to London Stock Exchange and are not owed to the Company or to any Director or to any other person in respect of his or her decision to acquire any shares in the Company.

ENDS

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December 18, 2020 02:00 ET (07:00 GMT)