Blockchain Global has completed due diligence as part of its approximate A$3.45 million investment in First Growth Funds (ASX: FGF), leaving only two more hurdles to circumvent before the placement can be completed and the duo can begin developing a blockchain centre in South Australia.
In early January, the companies reported that Blockchain Global had agreed to purchase a A$3.45 million stake in First Growth.
Under the proposal, Blockchain Global will purchase almost 282.3 million shares in First Growth at A$0.0122 each.
The placement also includes a 1:1 attaching option which is exercisable at A$0.03 within two years of the issue date.
As part of the placement, Blockchain Global will nominate Daniel Zhang as a non-executive director to First Growth’s board.
According to the company, Mr Zhang is also a chief operations officer of a China-based blockchain technology company Blockshine.
Once the placement has been completed, Blockchain Global will assist First Growth with establishing the planned blockchain centre in South Australia. Blockchain Global will also provide a licence and a staff member.
Upon reaching certain milestones, First Growth will issue Blockchain Global shares amounting to 60 million under further placements.
However, the investment remains subject to shareholder approval with an extraordinary general meeting to be held at the end of February.
The placement is also subject to ASX approvals.
In addition to its impending stake in First Growth, Blockchain Global also holds a 40% interest in cryptocurrency advisor DigitalX (ASX: DCC), which operates Australia’s largest cryptocurrency exchange ACX.io.
Meanwhile, First Growth has also invested A$350,000 in Cloud Lumen which is an Internet of Things LED lighting developer, which is aiming to debut on the ASX in the June quarter. Upon listing, First Growth will own about 18.5% of the company.
First Growth has also purchased a $350,000 slice of Pearl Global which has environmental approval to process end of life tyres into fuels, char and steel. Pearl is looking to list on the ASX imminently.
By early afternoon trade, First Growth’s share price had settled at A$0.037 – up almost 6%.