Tao Alpha Share News (TAO)

(Alliance News) - TAO Alpha PLC on Tuesday proposed a second convertible loan to raise a minimum of GBP100 million, after its cryptocurrency treasury was met with "unprecedented demand".

The London-based digital infrastructure developer operates the Bittensor network, which has different subnets available for cryptocurrency trading.

After announcing last Tuesday that it would allocate two-thirds of cash to a cryptocurrency treasury, TAO Alpha's shares increased more than fourfold. This was accompanied by news of a GBP5 million convertible loan from an investor syndicate.

In the week since, TAO Alpha has partnered with Tiger Royalties & Investments PLC, a London-based cryptocurrency investor which has bought two subnets on the Bittensor network.

As of Tuesday, TAO Alpha said it is in the process of securing loan commitments from a number of investors, including ParaFi Capital LP, a Greenwich, Connecticut-based blockchain and digital asset investment firm. TAO Alpha said the initial commitments totalled about GBP20 million, or 20% of the target.

TAO Alpha shares dropped 17% to 11.60 pence each on Tuesday afternoon in London.

The firm's latest fundraise will grant lenders first ranking debenture, such that their asset claims will be prioritised over lenders of the first GBP5 million loan. The loan will be free interest or additional fees, TAO Alpha said.

Terms will only be finalised after closing of the fundraise, scheduled in 20 days time, around mid-July. Terms will also depend on macroeconomic conditions, the company noted.

TAO Alpha has appointed Boca Raton, Florida-based stockbroker Dawson James Securities to assist its lead broker, London-based Fortified Securities, in this and in future fundraising, by facilitating access for US investors.

Chief Executive Matthew Lodge said the company will work to ensure that the funding rounds are converted into shares as soon as possible.

By Holly Munks, Alliance News reporter

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