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First Growth secures cornerstone investor in Blockchain Global

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By Lorna Nicholas - 
First Growth Funds ASX FGF Blockchain Global cornerstone investor
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First Growth Funds (ASX: FGF) has secured experienced blockchain play Blockchain Global as a cornerstone investor to facilitate its plans to raise A$3.45 million to fund investments in blockchain technology, assets or businesses.

As part of the share placement, First Growth will issue a 24.6% stake to Blockchain Global and other investors via the issue of more than 282 million shares at A$0.0122 each.

Blockchain Global will purchase almost half of the shares on issue, with funds raised anticipated by early March.

In addition to its auditing services, Blockchain Global owns a 40% interest in Perth-based DigitalX (ASX: DCC) which is the world’s first listed blockchain company. Blockchain Global also operates Australia’s largest cryptocurrency exchange – ACX.io.

Once the share placement is complete, Blockchain Global will assist First Growth in establishing a blockchain centre in South Australia and provide a licence and a staff member. Blockchain Global will also provide First Growth access to is deal flow pipeline throughout Australia and the world.

Additionally, upon achieving certain milestones, First Growth will issue Blockchain Global further share placements amounting to 60 million. Blockchain Global will also have the right to appoint a non-executive director to First Growth’s board.

However, Blockchain Global can pull out of this deal at any stage prior to the beginning of March.

First Growth is an investment vehicle which puts its money into companies it deems to have “significant upside” particularly unlisted entities that it can support through the listing process on the ASX.

As part of its strategy to expand into the blockchain sphere, First Growth appointed an experience blockchain director Anoosh Manzoori in mid-December last year.

This follows the company’s announcement in late November where it signed a binding term sheet with Heuresy to design, develop and implement a new digital currency exchange.

On the back of this morning’s news, First Growth’s share price rocketed more than 70% in early morning trade to sit at A$0.029.