Blockchain solutions provider DigitalX seeks to slash costs via Minority Holder Sale

Through the minority holder sale, DigitalX hopes to cut the administrative costs associated with maintaining a large number of very small holdings.

Australian Blockchain technology company DigitalX Ltd (ASX:DCC) is seeking to reduce costs stemming from maintaining a grand number of small shareholdings.

In a filing with the ASX, the company has unveiled its plans to conduct a minority holder share sale of parcels of shares with a market value of less than $500. Let’s note that a “marketable parcel” is a parcel of shares with a market value of not less than $500.

DigitalX notes that it “values all its shareholders, however it incurs significant administration costs maintaining such a large number of less than marketable parcels of shares”.

If recipients of the Minority Holder Notice wish to sell their shares through the Minority Holder Sale, they do not need to take any action. If Minority Holders do not wish to sell their shares through this sale, they must complete a form and send it to the Company’s share registry by the Retention date (September 29, 2017).

The amount received by a Minority Holder from the sale will be determined once all the shares under the Minority Holder Sale are sold.

In June this year, DigitalX entered into a conditional agreement with Blockchain Global Limited according to which Blockchain Global agreed to invest about $4.35 million at 2.7 cents a share to acquire an interest in approximately 40% of the company on a fully diluted basis, with the right to procure investors for 50% of its investment commitment.

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Source: Blockchain solutions provider DigitalX seeks to slash costs via Minority Holder Sale – FinanceFeeds