Intention to Float on AQSE Growth Market
- Investment Management
- 02.04.2021 09:38 am
NFT Investments, an investment company specializing in non-fungible tokens and established by the co-founders of $1bn market cap Argo Blockchain plc, is pleased to announce its intention to apply for admission of its Ordinary Shares to trading on the Access segment of Aquis Stock Exchange Growth Market (AQSE) in London, UK.
The flotation is expected to value NFT Investments at approximately £25m and make it the first-ever investment company focused exclusively on investing in non-fungible tokens (“NFTs”) to launch on a stock market in a major jurisdiction worldwide.
The Company plans to raise approximately £10m before expenses by way of a placing of 200 million ordinary shares at 5p each through First Sentinel Corporate Finance, the Company’s corporate adviser, and joint brokers Novum Securities and Tennyson Securities. First dealings in the shares are expected to commence later this month.
An NFT is a special, one-of-a-kind crypto asset that enables collectors to authenticate, own and trade original authenticated versions of unique digital goods on the blockchain. NFTs open an entire world of digital collecting and democratize the process by allowing the creators of digital tokens, typically an artist, digital creator or celebrity, to receive a crypto payment each time their work is traded. As well as being scarce and unique, NFTs provide a transparent chain of custody between the creator and the holder of the token adding a level of protection to collectible assets.
The Company considers that there is a sizable potential market for the NFT industry to emerge globally and take market share from the current collectibles industry. The volume of NFT trade amounts to date is over US$500 million (source: nonfungible.com), with US$240 million taking place in March 2021 (source: decrypt.co). Already other areas outside of digital art and collectibles have started to expand rapidly, such as celebrity NFT digital rights, virtual land, video game assets and NFT-backed loans. The Board anticipates that the NFT market will continue to grow over the long term with NFTs becoming a key underlying asset for the whole virtual economy.
NFT Investments was set up to invest in NFTs directly and in companies or funds that have exposure to NFTs and blockchain technology. The Company anticipates that returns to shareholders will be delivered through an appreciation in the value of its portfolio of NFTs and in the underlying cryptocurrencies as well as the digital NFT rights that are purchased and licensed by the Company.
Net proceeds of the IPO will be used to identify and carry out due diligence on potential investments and to provide working capital for the Company’s initial operations in line with its acquisition and investment strategy. The Board expects to be able to develop its business substantially within 12 months of admission to AQSE.
The Company’s directors and advisory board have an established track record, experience and networks in the crypto currency sector, digital assets management and decentralised finance, as well as the media industry to drive value creation.
The board of directors and investment committee includes Jonathan Bixby (Executive Chair) and Mike Edwards (Non-Executive Director) - the co-founders of Argo Blockchain (ARB), Guild Esports (GILD) and Cellular Goods (CBX), all listed on the London Stock Exchange.
Its advisory board members include Mack Flavelle, the co-founder of Crypto Kitties, considered by many to be the original NFT, Peter Wall, CEO of Argo Blockchain, Nolan Bushnell, best known as the founder of Atari, the video and arcade games pioneer, and Zai Ortiz, who brings a 20-year career in the Hollywood creative effects sector including key roles in the Ironman franchise, Mission Impossible and DC Comics.
Jonathan Bixby, Executive Chairman of NFT Investments, said: “I am incredibly excited to be leading the world’s first pure play NFT vehicle to list on a public market. Just like when our team brought Argo Blockchain to the London market, we have a vision of creating an on ramp from fiat into this exciting new space. Our team of blockchain and creative experts is truly world-class and we look forward to creating value for our shareholders in this exciting and growing space. We truly believe that NFTs will form the backbone of the digital collectables markets and owning the best individual assets and underlying rights can create immense value for our shareholders.”
To provide eligible investors with the opportunity to participate in the fundraising, the Company has granted an option (the "Broker Option") to Novum Securities, subject to Admission, to subscribe for up to an additional 60,000,000 new ordinary shares (the "Broker Option Shares") at 5p per share, exercisable before 5:00pm on 9th April 2021. Depending on demand, the number of Broker Option Shares subject to the Broker Option may be increased at the discretion of the Company with the written agreement of Novum Securities. If the Broker Option is fully taken up, it will raise an additional £3 million. If the Broker Option is not fully subscribed by 5:00pm on 9th April 2021, orders from eligible investors will be satisfied in full, and the balance of the Broker Option shall lapse.
To participate in the Broker Option, eligible investors should communicate their interest to Novum Securities directly in the first instance or alternatively via their independent financial adviser, stockbroker or other firm authorised by the Financial Conduct Authority. Novum Securities can be contacted on +44 (0)207 399 9427.
Application will be made for any Broker Option Shares issued to be admitted to trading on Aquis, such trading is expected to commence on 19 April 2021.