Goldmoney Inc. (TSX:XAU)
("
Goldmoney" or the "
Company"), a
precious metal financial service and technology company today
informs it has completed its previously announced bought deal
private placement (the “
Offering”) with a
syndicate of underwriters led by GMP Securities L.P. and including
Mackie Research Capital Corporation (collectively, the
“
Underwriters”). Pursuant to the Offering,
the Company issued 6,976,744 common shares (the
“
Shares”) at a price of $4.30 CAD per Share, for
aggregate gross proceeds of approximately C$30 million.
The net proceeds of the Offering are expected to
be used to fund further development of the blockchain custodial
architecture and software infrastructure for its
new BlockVault Inc. subsidiary and ColdBlocks™ product
offerings.
Pursuant to the Offering, the Underwriters
received a 5.0% cash commission.
The Shares issued pursuant to the Offering are
subject to a four month hold period expiring on February 26,
2018.
“We welcome our newest institutional investors
and thank them for their vote of confidence. With the culmination
of this financing, Goldmoney now counts four of the world’s largest
asset managers as shareholders,” said Goldmoney CEO Roy Sebag.
“Following this raise, Goldmoney has a formidable capital position
with nearly $150 million of group shareholder equity, zero debt,
and $1.8 billion of fee-paying client assets under custody. We have
reached this position of strategic importance in less than three
years since launching BitGold as an idea, demonstrating the groups’
versatility and experience in building businesses, operating those
businesses profitably, engaging capital markets, and executing
accretive M&A.”
“Over the past month since our first BlockVault
announcement, Goldmoney has made good progress in building the
BlockVault infrastructure in Toronto and Zug, Switzerland, and
engaging prospective institutional clients and partners globally.
Our innovative approach to custody, security, and compliance
through the unique ColdBlocks™ product offering has been very well
received by both traditional financial institutions and the crypto
asset community alike,” said Josh Crumb, Goldmoney CFO. “With the
closing of this financing, we look forward to hitting the ground
running with new investments in BlockVault personnel and software
development, and will report key progress and potential
partnerships as they develop over the coming months and
quarters.”
About Goldmoney Inc.
Goldmoney Inc., a financial service company
traded on the Toronto Stock Exchange (TSX:XAU), is a global leader
in precious metal investment services and the world’s largest
precious metals payment network. Safeguarding nearly $2 billion in
assets for clients located in more than 150 countries, Goldmoney is
focused on a singular mission to make precious metals-backed
savings accessible to all. Powered by Goldmoney’s patented
technology, the Goldmoney® Holding is an online account that
enables clients to invest, earn, or spend gold, silver, platinum,
palladium and cryptocurrencies that are securely stored in insured
vaults in seven countries. All bullion assets are fully allocated
and physically redeemable property. Goldmoney Wealth Limited is
regulated by the Jersey Financial Services Commission (JFSC) as a
Money Services Business. Goldmoney Network is a reporting entity to
the Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC), and is registered with the Financial Crimes Enforcement
Network (FinCEN) in the U.S. For more information about Goldmoney,
visit goldmoney.com.
Media and Investor Relations
Inquiries:
Jacquelyn Humphrey Director of Global
Communications Goldmoney Inc. jac@goldmoney.com
Josh Crumb Chief Strategy Officer & CFO
Goldmoney Inc. +1 647-499-6748
No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained herein. Neither the TSX nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX) accepts responsibility for the adequacy of this release.
Forward-Looking Information
This news release contains or refers to certain
forward-looking information. Forward-looking information can often
be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “plan”, “intend”, “estimate”, “may”,
“potential” and “will” or similar words suggesting future outcomes,
or other expectations, beliefs, plans, objectives, assumptions,
intentions or statements about future events or performance. All
information other than information regarding historical fact, which
addresses activities, events or developments that the Goldmoney
Inc. (the “Company”) believes, expects or anticipates will or may
occur in the future, is forward looking information.
Forward-looking information does not constitute historical fact but
reflects the current expectations the Company regarding future
results or events based on information that is currently available.
By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking
information will not occur. Such forward-looking information in
this release speak only as of the date hereof.
Forward-looking information in this release
includes, but is not limited to, statements with respect to: (i)
the Offering and (ii) the use of the proceeds of the Offering. This
forward-looking information is based on reasonable assumptions and
estimates of management of the Company at the time it was made, and
involves known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others:
the Company’s history of operating losses; future capital needs and
uncertainty of additional financing; fluctuations in the market
price of the Company’s common shares; the effect of government
regulation and compliance on the Company and the industry; legal
and regulatory change and uncertainty; jurisdictional factors
associated with international operations; foreign restrictions on
the Company’s operations; product development and rapid
technological change; dependence on technical infrastructure;
protection of intellectual property; use and storage of personal
information and compliance with privacy laws; network security
risks; risk of system failure or inadequacy; the Company’s ability
to manage rapid growth; competition; effectiveness of the Company’s
risk management and internal controls; use of the Company’s
services for improper or illegal purposes; uninsured and
underinsured losses; theft & risk of physical harm to
personnel; precious metal trading risks; and volatility of precious
metals prices & public interest in precious metals investment;
and those risks set out in the Company’s most recently filed annual
information form, available on SEDAR. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. The Company
undertakes no obligation to update or revise any forward-looking
information, except as required by law.
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