Owner of specialist blockchain enterprise ups its stake in IOT Group
After emerging from a trading halt this morning, The IOT Group (ASX:IOT) announced that long term major shareholder, Talk to Geoffrey Pty Limited (TTG), has conditionally agreed to increase its stake in IOT Group from approximately 2% to 19.5%.
TTG agreed to subscribe for shares in IOT in two tranches. The first tranche is for 70,000,000 shares at a subscription price of $0.0045 per share to raise $315,000 and is expected to days place in a matter of days. IOT last closed at $0.004 on May 8.
The second tranche, subject to IOT shareholder approval, is for the balance required to take TTG to 19.5% of IOT’s issued capital. Tranche 2 subscription price is equal to the 14 day VWAP per share prior to the subscription date.
Assuming the balance was done at the same price (0.045c) the number of shares to be issued under the 2nd tranche is 190,000,000. This would bring in a total of $1,170,000 pursuant to the subscription. This will meaningfully strengthen the capital structure and financial position of IOT.
It should be noted, however, that this is an early stage tech company and success is no guarantee. Investors should seek professional financial advice before making an investment.
TTG fully supports the IOT Group’s recently announced blockchain strategy which ties into their strategy of investing into this rapidly growing technology.
TTG own and operate the “exciting Blockchain enterprise” ChromaWay Asia Pacific — a business that has been developing and refining unique blockchain technology platforms particularly for the real estate and finance sectors since 2014. ChromaWay now plan to contract its services to IOT.
Executive Director and Founder of IOT Group Limited: Sean Neylon said, “Opportunities are growing for our Company especially in the IOT Blockchain business and we are delighted to see that a long term shareholder of IOT has the confidence to increase their position.
“This investment also brings experience through a Contract with ChromaWay, a Blockchain specialist. ChromaWay is an important strategic addition to the IOT Blockchain Advisory Service.
“With the blockchain expertise of Lakeba Group and ChromaWay, the IOT Blockchain Advisory Service is uniquely positioned to capitalise on opportunities in this growing space.”