Crypto Blockchain Industries (CBI), a Euronext Growth-listed company developing the AlphaVerse metaverse (virtual world), has launched a two-tier fundraiser to fund a development opportunity with professional football clubs, for which it will create virtual worlds licensed.
Crypto Blockchain Industries: Fundraising launched on Euronext Growth
Crypto Blockchain Industries (CBI), a French company developing the AlphaVerse metaverse (virtual world), has launched a capital increase of 4.89 million euro, through the issue of shares with subscription warrants (ABSA) on Euronext Growth Paris, the segment of the Paris Stock Exchange dedicated to growing SMEs. This fundraiser comes 15 months after its IPO, through the direct listing process. It is open to the public, private individuals can subscribe after acquiring preferential subscription rights on the market.
The transaction has received an underwriting commitment from Ker Ventures, a holding company owned by Frédéric Chesnais, chief executive officer and main shareholder of CBI, for 1 million euro, equal to 20.4% of the gross amount of the transaction. This benefits from a performance bond by Ker Ventures, allowing it to reach the success threshold set at 75% of the securities offered.
The main objective of this fundraiser is to finance the acceleration of the development of the AlphaVerse in the world of football.. It will also allow for the expansion of the company’s shareholding structure, bringing the free float (share of the public) to 8.77%, and to 9.79% in the event of full exercise of the share warrants.
Interview with Frédéric Chesnais, CEO of Crypto Blockchain Industries
“The opportunity to accelerate the creation of new virtual worlds in football”
What is the context of this fundraiser?
Alongside the Alphaverse metaverse, our virtual universe consisting of a central hub (“Hub”) that connects different virtual worlds, we have been working for several months on developing partnerships with major football clubs. This opportunity is materializing and we have started developing virtual worlds dedicated to these clubs. It is mainly to accelerate these developments that we have launched this fundraiser.
What will these virtual worlds dedicated to football clubs consist of?
For each of the clubs, we develop a virtual world that resembles the city it is in. We reproduce the stadium and training center in 3D, a museum; this world is full of screens that allow clubs to broadcast audiovisual content about the men’s or women’s professional team, youth teams or great moments in the club’s history.
These worlds are interactive. During their experience, visitors will be able to buy tickets in the virtual stadium, view this content, participate in mini-games. Owners will be able to access different defined experiences with clubs, post a photo or message there, win shirts and tickets to real world club matches and many more experiences and prizes. More generally, fans can participate in the history of the club.
Clubs will be able to create strong communities with their fans. In order to give supporters the widest possible access, it is a free-to-play universe, which works with the use of classic currencies or cryptocurrencies.
What is the business model?
This is the classic model of free-to-play games, applied to these virtual worlds of a new kind thanks to the use of the blockchain, which makes all their appeal. Our sources of income are the sale of digital assets in the virtual world, NFTs dedicated to clubs, such as stadium tickets, virtual shorts and shirts with club colors to dress the avatar. Finally we will generate income from minigames. The virtual world will also be able to host sponsored content and generate sponsorship income. These revenues are shared with each club under standard licensing agreements.
How will the funds raised be used?
65% of the operation will be used to develop the technological platform for distributing the virtual worlds of the various clubs and the virtual assets in each club’s colours.
The balance of the transaction can be used, up to 20%, to finance other gaming opportunities and/or targeted acquisitions of companies in the blockchain or that develop on it. The remaining 15% is intended to build up a reserve for future acquisitions and to finance the company’s current business.
Why did you choose to issue ABSA?
In addition to the shares, the BSAs give shareholders a second opportunity to create value through the exercise of share subscription warrants, with an exercise price of 1.40 euros, in order to associate them with a prospect of developing our business which could lead to a rise in the share price.
Terms of subscription of the capital increase
For an existing CBI shareholder
An existing CBI shareholder has Preferential Subscription Rights (DPS) attached to his shares, enabling him to underwrite the deal in priority, at the rate of one ABSA per 40 DPS.
Two scenarios arise:
- pre-transaction holding of one or more packets of 40 old CBI shares: priority subscription of an ABSA for each packet of 40 previously held CBI shares
- hold before the operation an insufficient number of old shares to obtain a whole number of ABSA: possibility to buy or sell the number of PSRs to obtain a whole number of ABSA
In addition, a shareholder may submit a subscription request on a reducible basis (the order may not be fully processed or not processed at all in the event of high demand) to Financière Uzès or its financial intermediary.
For a new investor
An investor who does not hold any securities prior to this transaction has two subscription options:
- acquisition of RDPs on the Stock Exchange (ISIN code: FR001400D153) from 19 January 2023 to 30 January 2023, through one’s account holder, then exercise of the corresponding RDPs, by 1 February 2023
- free subscription by 1 February 2023 at the latest with Financière Uzès or its financial intermediary, if there are still unsubscribed shares.
CBI fundraising: terms, calendar
Terms of the Crypto Blockchain Industries Capital Increase
- Listing market: Euronext Growth Paris
- Warehouse mnemonic: ALCBI
- ISIN code of the share: FR0014007LWO
- Subscription price: 0.80 euros for ABSA
- Nature of the transaction: capital increase with maintenance of the preferential subscription right
- DPS features:
Each share held at the end of 16 January 2023 gives the right to one DPS. 40 DPS owned or purchased will allow a subscription to 1 ABSA. The DPS will be listed and tradable until and including 30 January 2023 on Euronext Growth in Paris under the ISIN code FR001400D153.
- Type of securities offered: shares with subscription warrants (ABSA)
- Number of securities offered: 6,114,687 ABSA
- Share eligibility: PEA, PEA-PME, ordinary securities account (CTO), IR-PME tax relief
- Characteristics of BSAs:
1 BSA attached to 1 subscribed share. 3 The BSA will allow the subscription of one ordinary share at the unitary exercise price of 1.40 euro, at any time from the issue of the BSAs, until 31 March 2024. The BSAs will be listed on Euronext Growth with the ISIN code FR001400D0X2.
Dates of the capital increase
The indicative calendar of the capital increase is as follows:
- 12 January 2023: resolution of the board of directors to launch and fix the characteristics of the capital increase
- 16 January 2023: date of accounting entry of the holders of shares entitled to the assignment of the preferential option right (DPS)
- 16 January 2023: publication of the Euronext notice relating to the issue of new shares and the notice on the BALO
- 17 January 2023: detachment of DPS and start of negotiations
- 19 January 2023: opening of the subscription period and start of the exercise period of the DPS
- 30 January 2023: end of the DPS trading period
- 1 February 2023: closing of the subscription period and of the exercise period of the RDPs
- 7 February 2023: announcement of the result of the operation
- 9 February 2023: liquidation-delivery of securities and listing of new shares