Goldmoney Raises $30 Million Canadian Financing

Blockchain, Investing | October 4, 2017 By:

Gold-based financial services company Goldmoney has raised $30 million CAD in financing after entering an agreement with a syndicate of underwriters.

GMP Securities and Mackie Research Capital Corporation has agreed to purchase, on a bought deal private placement basis, 6,976,744 common shares of Goldmoney at a price of C$4.30 per share, for aggregate gross proceeds of $30 million CAD. The shares are expected to be offered to Canadian accredited investors, and the agreement is expected to close on or about October 25.

The proceeds will go towards further funding development of BlockVault and its subsidiary, both dedicated to providing institutional-grade custodial and investment services for blockchain assets. BlockVault will power Goldmoney’s planned ColdBlocks cryptocurrency, a “cryptographic innovation for the reification of blockchain cryptocurrencies into institutional-grade investable assets.”

Goldmoney said ColdBlocks are insurable and auditable as vaulted-custodial assets at any London Bullion Market Association-eligible vault location around the world that currently secures precious metals.

Goldmoney CEO Roy Sebag said the idea for ColdBlocks came about when one of their leading institutional investors asked them to devise a way for regulated hedge funds to buy and sell cryptocurrencies while providing the regulatory assurances mandated by their prospectus offering under securities-law.

“As the market for blockchain assets and cryptocurrencies has transitioned from its original premise of powering payments and remittances with a decentralized proof-of-work token to becoming a nascent speculative asset class, it has been perplexing to watch multiple technology companies serve as custodians for these assets – often safeguarding billions of dollars of wealth – while providing nearly zero accountability, transparency, or compliance with what are the most basic standards in the financial services industry,” said Sebag.

Goldmoney also plans to hire a sales team out of its Toronto office to offer these services to regulated financial service providers, brokerage firms, investment managers, and high-net-worth-individuals.

Last week, Goldmoney announced the addition of vaulted bitcoin and ethereum as secure and fully-reserved offline investable assets within the Goldmoney Holding, a major enhancement that allows qualified clients to buy, sell, and exchange cryptocurrencies with nine global currencies as well as gold, silver, platinum and palladium bullion.