Macro Energy (ASX: MEJ) should trade substantially higher on volume today after revealing its proposed acquisition of digitalBTC and completion of a $9.1 million capital raising.
digitalBTC is a digital currency company operating in Bitcoin mining and digital currency trading, and also developing retail consumer products for digital currencies such as mobile apps.
Macro has entered into a conditional Share Purchase Agreement to acquire 100% of the issued capital of the company from its shareholders.
The capital raising was oversubscribed, with firm commitments executed for maximum raise of $9.1 million.
Macro will undertake a share consolidation at a ratio of 5.715:1, and a name change to “DigitalCC Limited”, which will be the first digital currency focused company listed on the ASX.
As consideration, Macro will issue the vendors of digitalBTC 82,764,655 shares, 8,316,710 options and 24,950,130 performance rights.
Macro is to provide digitalBTC a loan of up to $2 million until the transaction is completed, to enable digitalBTC to acquire new Bitcoin mining hardware under strategic supplier arrangements.
The loan will be on commercial arm’s length terms and repayable by digitalBTC if the transaction does not proceed.
Following completion of the transaction, DigitalCC will have an implied pro-forma market capitalisation of $33.2 million, post consolidation of shares to $0.20 each, and around $12.4 million in cash.
Digital currencies such as Bitcoin and Litecoin are growing rapidly, offering fast, private and low cost transactions.
Bitcoin is a peer-to-peer payment system and digital currency, with a total market capitalisation of around US$8
Over 65,000 Bitcoin transactions occur daily for a trade value of US$55 million, on a rolling twelve month basis, and in excess of US$20 million in value is regularly traded every 24 hours.
digitalBTC is well placed to take advantage of this revolution and will investigate further strategic opportunities within the digital currency sector.
The acquisition is conditional upon Macro shareholder approval, and compliance with chapters 1, 2 and 11 of the ASX Listing Rules.
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