Vaultoro 
DigitalX Ltd (ASX: DCC) today announced it has secured up to AUD $1m in financing from Ironside Capital (formerly Merchant Corporate) via the issue of converting notes.
The funds received will be applied to marketing and distribution for the firm’s blockchain enhanced remittance application, AirPocket, increasing the path to market for DCC’s distributed ledger technology enterprise solution, AirID and to provide working capital.
An initial AUD $300,000 will be available this month. The DigitalX Board considers the terms of the notes commercially reasonable and represents a price conversion at a premium to the current market price of DCC shares.
The key terms of the notes are as follows:
| Item | Summary |
| Face Value | AU $1,000,000 via 100 units of converting notes at $10,000 per unit over 4 tranches. The first tranche is $300,000. Each unit receives 100,000 options expiring 15 December 2018 at the lower of 6c or 20% premium to the next capital raising. The remaining 3 tranches are based on conservative but commercially sensitive KPI’s |
| Maturity Date | 1 year |
| Interest Payment | 15% p.a. calculated monthly and paid quarterly |
| Security | Security Notes will be secured by DCC’s assets |
| Conversion Price | 5c |
| Conversion Period | May convert at any time at 5c per share (plus the issue of the relevant options) |
| Exit Fees | 6m DCC Shares on conversion or repayment of the Notes |
| Raising Fee | 6% plus 2-year options at the lower of 6c or 20% premium to next capital raising |
| 3-month Corporate Advisory Fee | US$30,000 plus 6m DCC shares based on commercially sensitive KPI’s |
| Shareholder Approval | Shareholder Approval will be sought at a forthcoming shareholder meeting for the entry into the notes for tranches 2 through 4 of the convertible notes and the ratification of the first tranche |
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