Coinsilium Group, the accelerator that finances and manages the development of early-stage blockchain technology companies today announced that its wholly-owned subsidiary Seedcoin Limited has entered into a conditional agreement with Blue Star Capital Plc to sell its entire holding of 2,133 shares in the investee company
SatoshiPay Ltd at the price of €340 per share for a total consideration in cash of €725,220 and representing an increase of 362.6% compared to the price paid for these shares in 2015.
The disposal is conditional on Blue Star raising approximately £650,000 through a proposed placing, which will be used together with Blue Star’s existing cash resources to satisfy the consideration payable to Seedcoin. Blue Star has raised £650,000, conditional, upon passing certain Blue Star resolutions, for which, notice of General Meeting is being posted to Blue Star shareholders today.
Blue Star has also agreed, conditional on completion of the transaction, to grant Coinsilium 85 million warrants over new Ordinary Shares of Blue Star, of which 42.5 million are exercisable at a price of 0.6 pence per Ordinary Share (representing a premium of 200% in comparison to the Placing Price) and 42.5 million are exercisable at a price of 0.8 pence per share for a 3-year period from completion of the acquisition (together the “Seller Warrants”). The Seller Warrants are also conditional on the certain resolution being passed at the Blue Star General Meeting.
Details of the proposed disposal
On July 4th, 2017, Coinsilium Group’s subsidiary Seedcoin and Blue Star entered into a sale and purchase agreement (SPA) under the terms of which Blue Star has agreed to purchase all of the Seedcoin’s 2,133 shares in SatoshiPay for a total consideration of €725,220 (approximately £636,344) in cash, equivalent to a price of €340 per SatoshiPay share which is the price per share at which SatoshiPay raised €1 million earlier this year.
If completed, the disposal would result in Blue Star holding 31.1% of the capital of SatoshiPay. The sale of the Seedcoin’s interest in SatoshiPay at a price of €340 per share represents an increase of 362.6% in value since the time of the original investment in 2015.
Eddy Travia, Coinsilium CEO of Coinsilium, commented:
“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.”
“In this regard, SatoshiPay has proven to be an outstanding investment for Coinsilium and with the inclusion of 85 million ‘Seller Warrants’ in the proposed transaction we continue to maintain a substantial degree of upside exposure to the future success of SatoshiPay.”
“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.”