The Smarter Web Co PLC on Thursday issued 7 million new shares under a subscription agreement, alongside buying cryptocurrency for treasury allocation.
This comes after the Guildford, Surrey-based website design agency on Wednesday signed a deal with Shard Merchant Capital Ltd, a subsidiary of London-based asset manager Shard Capital Partners LLP.
Under this deal, Shard can ‘use reasonable endeavours to place up to 21 million’ new Smarter Web shares, provided the price is not below the previous day’s closing price on Aquis, and the volume is not greater than 20% of the current trading day.
After Thursday’s first tranche issue, 14 million new Smarter Web shares remain unreleased. Shard must place each tranche of shares within three months from subscribing for them. Smarter Web is entitled to around 97% of net proceeds generated by Shard.
Chief Executive Andrew Webley commented: ‘I am looking forward to working with our advisors on evaluating the effectiveness and perhaps we can then inspire other UK companies to adapt a similar mechanism, as we have seen with our pioneering approach to treasury management using Bitcoin.’
The trance release comes alongside Smarter Web’s announcement that it has purchased 104.28 bitcoin at an average £77.75 for a total £8.1 million. This leaves the company’s total bitcoin holding at 364.63 units, at an average £77.75, which is worth about £27.2 million.
Smarter Web noted 7.4% dilution for all existing shareholders, including Webley, whose stake decreased to 12.42% from 13.41%. According to Smarter Web, the dilution was ‘offset by a capital injection of approximately £29.3 million’.
Additionally, Smarter Web on Wednesday appointed Jesse Myers, a bitcoin hedge fund founder, as the company’s bitcoin strategy consultant. Myers has invested £970,000 in the company as part of its fundraising efforts. Prior to working in cryptocurrency, Myers was a management consultant at Boston, Massachusetts-based consultancy Bain & Co.
Smarter Web shares traded up 14% at 417.50 pence on the Aquis market on Thursday afternoon.
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