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(Alliance News) - Quantum Blockchain PLC on Monday said it has raised GBP2.0 million through a share placing, and intends for the proceeds to further enrich its research and development programme.
The stock was down 14% at 1.54 pence in London on Monday morning.
Quantum said it placed 133.3 million new shares of 0.25p each, priced at 1.5p per share. It expects them to be admitted to AIM on or around Thursday, after which its share capital will comprise 1.29 billion shares.
Quantum plans to use most of the net proceeds as additional funds for its research & development programme, "principally through the expansion of the R&D team, the purchase of additional hardware and an increase in software development".
However, Quantum added that some funds will go towards general working capital, and towards its ongoing legal claims.
"We are extremely pleased to have completed this GBP2 million fundraise, as we believe it will fund the company through to revenue," proclaimed Chair & Chief Executive Officer Francesco Gardin. "The placing provides QBT with the opportunity to set up its cloud service infrastructure, most likely in North America, to enable the deployment of Method A and Method B as a SaaS product for the bitcoin mining market."
Explaining that it will generate revenue either by charging subscription feeds to mining rig owners using its service, or by sharing extra mined bitcoins, Gardin added: "We therefore believe that this opportunity significantly outweighs any short-term effect caused by the additional shareholder dilution."
By Emma Curzon, Alliance News reporter
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