The smart networking company, a company that owns Bitcoins on the balance sheet of a publicly traded company in the UK, has raised $21 million through new Bitcoin-led bonds, marking a rare move in the UK capital market.
London Stock Exchange on Wednesday announcementSmart Network Company revealed it launched Bitcoin-denominated bonds This has raised £15.8 million ($21 million). The bond is offered by a full subscription to French asset management giant Tobam.
The new product, “Smarter Convert”, was designed in partnership with Tobam, and the French company invested through its three custodial funds. Tobam CEO Yves Choueifaty said the company is “driven by a commitment to long-term consistency.”
Tobham- which one claim Having more than $2 billion in asset management assets by the end of 2024 – not new assets in the cryptocurrency space. Back in 2017, the company announced Create the first Bitcoin mutual fundDesigned to provide access to institutional investors.
Andrew Webley, CEO of Smart Networks, said the bond structure is “first in the UK’s capital market”. He added:
“We believe this new structure will open up new capital for the company and complement our existing funding strategies as we pursue our ambition to become one of the largest publicly listed companies in the UK.”
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Convertible bonds are priced at Premium
The product is centered on Bitcoin-denominated 12-month bonds (BTC) converts to smarter web company stocks at 5% price, compared to $2.60 on August 5. The final conversion price is about $2.73.
If all bonds are converted into stocks, Smarter Web will issue more than 7.7 million new shares. Nevertheless, if the stock price rises by 50% for 10 consecutive trading days, the company can force the transfer.
If no conversion occurs, the company will repay 98% of the bond principal in Bitcoin upon maturity and adjust the repayment to reflect the BTC price at that time.
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Another way to raise funds
Since the bond is priced in Bitcoin, the restore amount will fluctuate based on the price of the world’s first cryptocurrency. The product enables smart network companies to raise funds without immediately diluting their stock value while still increasing their Bitcoin holdings.
“Smart network companies raise funds at a premium based on the conversion share price higher than the reference share price, with a dilution rate of about 5% lower than the traditional equity increase, on the date of bond issuance,” the announcement said.
The announcement is the addition of smart network companies to the BTC storage board throughout July. According to BitCoinReasuries.net, the company currently holds 2,050 BTC worth approximately $234 million, and has since Latest purchases at the end of last monthadd 225 BTC to its safe.
