DigitalX raises $1.6m, locks in new partnership, changes management

By Megan Graham. Published at Nov 28, 2016, in Technology

Having raised $1.6 million last week in an oversubscribed capital raising to new and existing institutional and sophisticated investors, DigitalX Limited (ASX:DCC), an innovative software solutions company focused on the global digital payments industry, today announced a new partnership with leading remittance company UniTeller as well as considerable changes to the company’s management.

DigitalX subsidiary AirPocket LLC has signed an agreement with Servicio UniTeller Inc., (UniTeller) which will allow the company to process remittance transactions to over 40,000 cash out locations across Latin America and Asia (including Walmart, other large retailers and all of Mexico’s major banks).

The initial focus following the agreement will be in the US-Mexico remittance corridor, which will leverage more than 17,000 cash out locations. The agreement provides AirPocket with Money Transmitter Licenses across 44 US States; UniTeller processes over 15% of the US to Latin American Corridor and manages a network of more than 40,000 cash out locations around the world.

According to the announcement, the integration of AirPocket into UniTeller’s remittance network is currently underway and is expected to generate revenue in Q1 2017.

How much revenue is to be generated is speculative at this stage and investors considering this stock for their portfolio should seek professional financial advice for further information.

Change in management including a new CEO

DCC also advised that the team will be led by Australian based CEO Leigh Travers and US based President Neel Krishnan, inventor of the AirPocket application. As part of these changes, DigitalX co-founders Alex Karis and Chief Trading Officer William Brindise have resigned from the board.

This marks the first time DCC will have an Australian based CEO. Mr Travers, who will remain as an Executive Director, will continue in his role as the Vice Chairman of the ADCA – Australia’s leading industry body for the Blockchain industry.

The inventor behind the AirPocket app, Neel Krishnan, brings relevant experience to his new role as President, which he gained in part through a previous role at the Federal Reserve Bank of New York running liquidity and financial modelling.

Having stepped down from the board, both Mr Karis and Mr Brindise have voluntarily escrowed their shareholdings into mid-2017.

Oversubscribed capital raise strengthens DCC’s position

Last week, DCC completed an oversubscribed capital raising of $1.62m (before fees) with the assistance of WA based financial services firm, Merchant Corporate.

DCC’s new management team exceeded expectations for the capital raise, with the new board personally contributing approximately AU$350,000.

The opportunity was offered to new and existing institutional and sophisticated investors. Existing shareholders will have the opportunity to participate in this capital raising via a Share Purchase Plan (SPP) at 5c, with a 1:2 attaching option at 8c. The company has advised that further details regarding the public SPP will be released in due course.

Regarding DigitalX’s current changes, CEO Leigh Travers said: “Today marks a new chapter for DigitalX Ltd with our partnership with leading Money Transfer Organization, UniTeller, successful capital raising and promotion of Neel Krishnan to President. We have come a long way from our history as a bitcoin group to now have this opportunity to be launching the world’s first Blockchain-enhanced mobile payments application, AirPocket.

“The major shareholders and founders have been incredibly supportive of these moves and I am delighted Alex Karis will continue in a formal basis as an advisor to DigitalX to cement further key partnerships in the negotiation phase. From here, the pure focus is delivering the AirPocket product and on our mission of delivering low-cost financial services to the people that most require them.”

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