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LONDON - The Smarter Web Company PLC (AQUIS:SWC) announced Wednesday it has secured $21 million through a fully subscribed convertible bond denominated in Bitcoin. The funding comes from asset management firm TOBAM through three of its managed funds.
Named "Smarter Convert," the interest-free capital-raising instrument allows conversion into equity at a 5% premium to the reference share price of £1.95, based on the company’s closing price on August 5.
Key terms of the bond include a provision allowing the company to force conversion after six months if the share price trades 50% above the conversion price for 10 consecutive trading days. If bonds remain unconverted after 12 months, the company will repay 98% of the bond value to investors.
The bond’s principal value is denominated in Bitcoin, meaning repayment amounts will fluctuate with Bitcoin’s price. However, the conversion share price remains fixed in British pounds.
"We have been building our Bitcoin-backed balance sheet with laser focus, and today’s announcement marks yet another first for the UK capital markets," said Andrew Webley, CEO of The Smarter Web Company, in the press release.
If all bonds are converted to equity, approximately 7.7 million new shares would be issued, according to the company.
Yves Choueifaty, CEO of TOBAM, described the structure as offering "prudent downside protection, premium equity participation, and a Bitcoin-denominated structure."
The Smarter Web Company provides web design, development and online marketing services, with clients paying initial fees plus annual hosting charges and optional monthly marketing fees. Since 2023, the company has accepted Bitcoin as payment and incorporated a Bitcoin treasury policy into its strategy.
The company indicated that similar bonds could be issued to other investors, including TOBAM, at future market prices using the same structure.
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