Chapmans digs deep to lock down $4 million blockchain cash splash
This year's investments so far put Chapmans on the hook to pay $6.3 million. Pic: Getty
Investor Chapmans (ASX:CHP) has locked down a second blockchain deal, but with not a lot in the bank it will be tapping all options to raise the needed money.
It has signed a binding term sheet with trading platform Securrency promising to invest $US4 million ($5.1 million), valuing the US company at $US50 million.
At the end of December, Chapmans had just $41,000 left in its bank accounts.
Chapmans is going to pay for the investment out of its own kitty, selling other assets, via a convertible note, and raising capital.
The investor said on Friday it had raised $1 million, part of which would go to the Securrency deal.
It’s not clear whether this was part of the $1.5 million that Chapmans was planning to raise to fund a separate investment in software-as-a-service company Rison, which will cost all up about $1.2 million.
The deal gives Chapmans the right to buy up to 10 per cent of Securrency, a company that uses blockchain to help people trade illiquid assets such as property or mining rights as well as looking after the associated regulatory compliance.
Chapmans is hoping to list sport-focused digital network 20Four before July and gained two Malaysian businessmen — a developer and a billionaire chicken king — as major investors in December.
Stockhead is seeking comment from Chapmans.
Chapmans opened up 7 per cent at 1.5c on Monday morning.