Blockchain Holdings Ltd (CSE:BCX) announced Tuesday it has closed the first tranche of an oversubscribed public placement for nearly C$1.5 million.
The technology company will use the funds to finalize the acquisition of TRACEsafe, a global health monitoring product that is seeing interest by governments and corporations dealing with the global coronavirus pandemic.
Due to increased demand, the Tortola, British Virgin Islands-based company is boosting the size of the private placement to C$1.6 million and intends to close a subsequent tranche shortly, it told investors.
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TRACEsafe’s disposable bracelets are currently being used by the Hong Kong government to manage and enforce its quarantine program for foreign visitors. The program’s success spurred Blockchain Holdings to roll out TRACEsafe in multiple countries in the coming weeks and months.
The firm said recently that confirmed orders exceed 65,000 units.
Blockchain Holdings CEO Wayne Lloyd said he believes the bracelets will play a critical role in assisting governments to mitigation the ongoing pandemic.
“The acquisition of the TRACEsafe business assets further advances Blockchain Holdings' technology and data aggregation business,” Lloyd told shareholders when the deal was announced in March.
Under the terms of the private placement, the company issued just over 4.9 million shares priced at C$0.30 per unit for total proceeds of C$1,475,699.20. Each unit consists of one share and one-half of one warrant exercisable at C$0.50 for a two-year period.
The firm also said that the holders of the convertible notes originally issued on September 13, 2019 exercised their conversion options. Blockchain Holdings issued 899,847 shares for the conversion of C$264,000 convertible notes.
Shares of Blockchain Holdings traded at C$0.81 on the Canadian Securities Exchange on Tuesday afternoon.
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