Blue Star Capital plc Loan to SatoshiPay (0660Y)
December 01 2017 - 2:01AM
UK Regulatory
TIDMBLU
RNS Number : 0660Y
Blue Star Capital plc
01 December 2017
Blue Star Capital plc
("Blue Star" or the "Company")
Loan to SatoshiPay
Blue Star Capital plc (AIM: BLU), the investing company with a
focus on technology and its applications within media and gaming,
announces that it has subscribed for EUR200,000 of convertible loan
notes ("LN") issued by its investee company SatoshiPay Ltd
("SatoshiPay"). Blue Star has an existing 31% equity interest in
SatoshiPay.
The LNs have been subscribed for by Blue Star at nominal value
(EUR200,000 in aggregate) and are redeemable in cash on 31 December
2018 together with interest accrued at a rate of 4% per annum.
Alternatively, Blue Star may elect to redeem the LNs early in full
upon completion by SatoshiPay of a fundraising in excess of
EUR750,000 or in the event of certain circumstances including
SatoshiPay being in financial distress.
Blue Star may also convert the outstanding LN into fully paid
ordinary shares in SatoshiPay ("SatoshiPay Shares") in the event
that:
i. SatoshiPay completes a fundraising of at least EUR750,000; or
ii. in the event of a change of control of SatoshiPay; or
iii. at any time after 30 June 2018.
In the event of conversion of the LN into SatoshiPay Shares
("Conversion"), the outstanding LNs would be converted at a 15%
discount to the valuation of the relevant equity fundraise
undertaken by SatoshiPay on or prior to the date of Conversion or
the valuation of SatoshiPay at the time of a change of control of
SatoshiPay. For illustrative purposes, conversion at a 15% discount
to the valuation of SatoshiPay of approximately EUR6 million (being
the valuation at the time of SatoshiPay's fundraise in January
2017) would result in Blue Star increasing its holding in
SatoshiPay by approximately 3.8%.
SatoshiPay intends to use the proceeds of the LN for working
capital purposes as SatoshiPay seeks to commercialise its
technology.
Tony Fabrizi, CEO of Blue Star said "We are pleased to provide
this ongoing support to SatoshiPay as it commences the full
commercialisation of its technology. Now that the technology can be
scaled efficiently we look forward to SatoshiPay's management being
able to focus on building the customer base and proving the
business model. This additional funding combined with SatoshiPay's
existing cash resources of over EUR500,000 should provide
sufficient resources to achieve that objective."
SatoshiPay CEO Meinhard Benn said "We are actively preparing to
move all transactions onto the Stellar network from the beginning
of 2018 and the loan from Blue Star is a conservative step to
ensure management can focus aggressively on building the client
base while fully optimising the significant marketing support from
Stellar Foundation. Since announcing our partnership with Stellar
the value of their marketing pledge to SatoshiPay users through the
allocation of 50m Lumens to the first 100,000 users is now over
EUR3m at today's price."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 ("MAR").
For further information, please contact:
Blue Star Capital
plc
Tony Fabrizi +44 (0) 777 178 2434
Cairn Financial Advisers
LLP +44 (0) 20 7213 0880
(Nominated Adviser)
Emma Earl/Jo Turner
Smaller Company Capital
Limited +44 (0) 203 651 2911
(Broker)
Rupert Williams/Jeremy
Woodgate
About Blue Star Capital plc
Blue Star is an investing company with a focus on new
technologies. Blue Star's investments include a 31% holding in
SatoshiPay, a nanopayment software and blockchain company; a
holding in Disruptive Tech Limited, an investing company with five
investments including a 38% holding in VNU Group LLC ("VNU") a
speciality online direct retailer of premium goods paid for through
an instant credit facility and a holding in Nektan PLC; and a 1%
investment in Sthaler, an early stage identity and payments
technology business which enables a consumer to identify themselves
and pay using just their finger at retail points of sale
This information is provided by RNS
The company news service from the London Stock Exchange
END
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