CBI fundraising on the stock market: price, terms, goals

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

Crypto Blockchain Industries: fundraising launched on Euronext Growth

Crypto Blockchain Industries (CBI), a French company that develops the metaverse (virtual world) AlphaVerse, has launched a capital increase of 4.89 million euros through the issue of shares with subscription options (ABSA) on Euronext Growth Paris, the department of the Paris Stock Exchange dedicated to growth SMEs. This fundraising comes 15 months after its IPO, through the direct listing procedure. It is open to the public, individuals can subscribe after acquiring pre-emptive rights in the market.

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

The main purpose of this fundraising is to finance the acceleration of the development of AlphaVerse in the world of football.. It will also enable an expansion of the company’s shareholder base, bringing the free float (share of the public) to 8.77% and to 9.79% in the event of full exercise of share warrants.

Interview with Frédéric Chesnais, CEO of Crypto Blockchain Industries

“The possibility of accelerating the creation of new virtual worlds in the world of football”

What is the context for 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 to develop partnerships with leading football clubs. This possibility is becoming a reality and we have started to develop virtual worlds dedicated to these clubs. It is primarily to accelerate this development that we 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 located in. We render the stadium and training center in 3D, a museum; this world is filled with screens that allow clubs to broadcast audiovisual content on the professional men’s or women’s teams, youth teams or the 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. Holders will be able to access different experiences defined with the clubs, post a picture or message there, win team jerseys and tickets to real club matches and many other experiences and prizes. More generally, fans can participate in the club’s history.

Clubs will be able to create strong communities with their fans. In order to provide the widest possible access to supporters, it is a free-to-play universe that 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 type due to the use of blockchain, which makes them 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 jerseys in club colors to dress 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. These revenues are shared with each club under standard licensing agreements.

How will the funds raised be used?

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

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

Why did you choose to issue ABSA?

In addition to the shares, the BSAs give shareholders another 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.

Conditions for subscription of the capital increase

For an existing CBI shareholder

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

Two scenarios arise:

  1. pre-operational possession of one or more packages of 40 old CBI shares: Priority subscription of one ABSA per package of 40 CBI shares previously held
  2. holding before the operation of an insufficient number of Old Shares to obtain a whole number of ABSAs: option to buy or sell the number of PSRs to have a whole number of ABSAs

In addition, a shareholder may make a subscription request on a reduced basis (the order may not be fully served or not served at all in case of high 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:

  • acquisition on the exchange of PSRs (ISIN code: FR001400D153) from January 19, 2023 to January 30, 2023 through its account holder, then utilization of the corresponding PSRs no later than February 1, 2023
  • free subscription no later than 1 February 2023 at Financière Uzès or their financial intermediary, if there are still shares issued.

CBI fundraising: terms, schedule

Terms of Crypto Blockchain Industries Capital Raise

  • Listing market: Euronext Growth Paris
  • Stock mnemonic code: ALCBI
  • The share’s ISIN code: FR0014007LWO
  • Subscription price: 0.80 euros per ABS
  • Nature of the transaction: Capital increase with retention of pre-emptive rights
  • DPS features:
    Each share held at the end of January 16, 2023 gives the right to one DPS. 40 DPS held or purchased will enable subscription to 1 ABSA. The DPS will be listed and tradable until January 30, 2023 inclusive 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
  • Eligibility of shares: PEA, PEA-PME, ordinary securities account (CTO), IR-PME tax reduction
  • Characteristics of BSAs:
    1 BSA linked to 1 subscribed share. 3 BSAs will allow the subscription of one ordinary share at a unit exercise price of 1.40 euros, 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 for the capital increase is as follows:

  • 12 January 2023: The board’s decision to initiate and determine the characteristics of the capital increase
  • 16 January 2023: record date for the holders of shares entitled to be granted preferential subscription rights (DPS)
  • 16 January 2023: publication of the Euronext announcement regarding the issue of new shares and of the announcement on BALO
  • 17 January 2023: deployment of DPS and start of negotiations
  • 19 January 2023: opening of the subscription period and start of the DPS exercise period
  • 30 January 2023: end of the DPS negotiation period
  • February 1, 2023: closing of the subscription period and exercise period for PSRs
  • February 7, 2023: publication of the result of the operation
  • 9 February 2023: settlement-delivery of securities and listing of new shares

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