CBI fund raising in the stock market: price, conditions, objectives

Crypto Blockchain Industries (CBI), a Euronext Growth listed company that develops metaverse (virtual world) AlphaVerse, has launched a two-tier fundraising to fund a development opportunity with professional football clubs, for which it will create world licensed virtual.

Crypto Blockchain Industries: fundraising launched on Euronext Growth

Crypto Blockchain Industries (CBI), a French company that develops metaverse (virtual world) AlphaVerse, has launched a Capital increase in the amount of 4.89 million euros, through the issuance of shares with subscription guarantee (ABSA) at Euronext Growth Paris, the division of the Paris Stock Exchange dedicated to the growth of SMEs. This fundraising comes 15 months after that Initial Public Offering, through the direct quotation procedure. It is open to the public, individuals can subscribe after having acquired preferential subscription rights in the market.

The transaction has received an underwriting commitment from Ker Ventures, holding company owned by Frédéric Chesnais, CEO and main shareholder of CBI, for 1 million euros, representing 20.4% of the gross amount of the operation. This benefits from a performance guarantee by Ker Ventures, allowing it to reach the success threshold set at 75% of securities offered.

The main objective of this fundraising is to fund the acceleration of AlphaVerse’s development in the world of football.. It will also allow the expansion of the company’s shareholder base, bringing the free float (public share) 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 the world of football”

What is the context of this fundraising?

Alongside the Alphaverse metaverse, our virtual universe consisting of a central hub (“Hub”) connecting 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 to develop virtual worlds dedicated to these clubs. Mainly to accelerate these developments we started this fundraising.

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 in which it is located. We reproduce the stadium and training center in 3D, a museum; this world is filled with screens that allow clubs to broadcast audiovisual content on the men’s or women’s professional team, youth teams or big moments in the club’s history.

These worlds are interactive. During their experience, visitors will be able to buy tickets to the virtual stadium, view this content, participate in mini-games. Holders will be able to access various club-defined experiences, post a photo or message there, win team jerseys and tickets to real-world club matches, and many other experiences and prizes. In general, fans can participate in the history of the club.

Clubs will be able to create strong communities with their fans. In order to give the widest possible access to the supporters, it is a free-to-play universe that works with the use of classic coins or cryptocurrencies.

What is the business model?

This is the classic model of free games, applied to these virtual worlds of a new kind due to the use of blockchain, which makes them all attractive. 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 jerseys in club colors to wear the avatar. Finally we will generate revenue from mini-games. The virtual world will also be able to host sponsored content and generate sponsorship revenue. This revenue is shared with each club according to standard licensing agreements.

How will the collected funds be used?

65% of the operation will be allocated to the development of the technological platform to place the virtual worlds of different clubs and virtual assets in the colors of each.

The balance of the operation may be used, up to 20%, to fund other gaming opportunities and/or targeted acquisitions of companies on the blockchain or that may be developed there. The remaining 15% is intended to constitute a reserve for future acquisitions and finance the company’s current activity.

Why did you choose to launch ABSA?

In addition to shares, BSAs give shareholders a second opportunity to create value through the exercise of share subscription warrants, with an exercise price of 1.40 euros, to link them to a development perspective of our activity, which may result in an increase in the share price.

Terms of subscription for capital increase

For an existing CBI shareholder

A shareholder who already owns CBI shares has preferential subscription rights (DPS) attached to his shares, allowing him to subscribe preferentially to the operation at the rate of one ABSA for 40 DPS.

Two scenarios appear:

  1. holding before operation of one or more packs of 40 old CBI shares: priority subscription of one ABSA per pack of 40 CBI shares previously held
  2. holding before operation an insufficient number of old shares to obtain a full ABSA number: the possibility of buying or selling the number of PSRs to have a full ABSA number

In addition, a shareholder may make a subscription request on a reducible basis (the order risks not being fully served or not served at all in case of strong demand) with Financière Uzès or its financial intermediary.

For a new investor

An investor who does not hold any securities before this operation has two subscription options:

  • purchase on the Exchange of PSRs (ISIN code: FR001400D153) from January 19, 2023 to January 30, 2023, through the account holder, then exercising the respective PSRs, no later than February 1, 2023
  • free subscription no later than February 1, 2023 with Financière Uzès or their financial intermediary, if there are still outstanding shares.

CBI fundraising: terms, schedule

Crypto Blockchain Industries Capital Raising Terms

  • Listing market: Euronext Growth Paris
  • Stock mnemonic code: ALCBI
  • Stock ISIN code: FR0014007LWO
  • Subscription price: 0.80 euro for ABSA
  • Nature of operation: capital increase with preservation of preferential subscription rights
  • Features of DPS:
    Each share held at the end of January 16, 2023 entitles one DPS. 40 DPS held or purchased will enable subscription to 1 ABSA. DPS will be listed and tradable until January 30, 2023, including on Euronext Growth in Paris under the ISIN code FR001400D153.
  • Type of securities offered: shares with subscription guarantee (ABSA)
  • Number of securities offered: 6,114,687 ABSAs
  • Admissibility of actions: AEP, PEA-SME, securities common account (CTO)Reduction of IR-PME tax
  • Characteristics of BSAs:
    1 BSA attached to 1 subscribed share. 3 BSAs will allow subscription for one ordinary share at an exercise price per unit of €1.40, at any time from the issue of the BSAs, until 31 March 2024. The BSAs will be listed on Euronext Growth under the code ISIN FR001400D0X2.

Dates of capital increase

The indicative schedule of the capital increase is as follows:

  • January 12, 2023: decision of the board of directors to initiate and establish the characteristics of the capital increase
  • January 16, 2023: date of accounting of holders of shares entitled to be granted preferential subscription rights (DPS)
  • 16 January 2023: publication of the Euronext announcement regarding the issuance of new shares and the announcement of BALO
  • January 17, 2023: transfer of DPS and start of negotiations
  • January 19, 2023: opening of the subscription period and beginning of the DPS exercise period
  • January 30, 2023: end of DPS negotiation period
  • February 1, 2023: end of subscription period and exercise period for PSRs
  • February 7, 2023: announcement of the result of the operation
  • February 9, 2023: redemption-delivery of securities and listing of new shares

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