Vinanz Limited, a Bitcoin-focused firm listed on the London Stock Exchange’s Main Market, has announced a substantial $4 million investment aimed at strengthening its position in the cryptocurrency sector.
The company disclosed that the first tranche of $2 million has already been received, while the remaining $2 million will be disbursed under specific conditions.
The strategic funding comes from a global investment management firm and was facilitated by U.S.-based Dominari Securities.
Vinanz plans to use the capital to expand its Bitcoin holdings and infrastructure as it prepares for a potential dual listing on the Nasdaq, signaling its ambition to tap into the broader U.S. investor base.
Investment Structure and Terms Provide Strategic Flexibility
This investment is structured as a bridge funding agreement with a 12-month repayment window from the date of each drawdown, carrying an annual interest rate of 5%.
Notably, the agreement includes an option for the debt to be converted into equity, offering the investor the ability to convert their investment into Vinanz shares.
The conversion rate is set at the lower of either 25 pence per share or 95% of the lowest single daily VWAP (Volume Weighted Average Price) within the 10 trading days prior to the investor’s conversion election.
These terms offer both financial flexibility for Vinanz and an incentive for the investor, while also placing caps to prevent over-concentration of ownership.
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Conversion and Ownership Restrictions Protect Market Stability
Despite the flexibility offered in the conversion terms, strict limitations have been embedded to protect Vinanz’s share structure and public market perception.
The agreement prohibits any conversions within the first 90 days of the funding unless the share price reaches 25 pence, a provision likely meant to ensure price stability.
Furthermore, the investor is barred from holding more than 4.99% of Vinanz’s total shares at any time, which protects against excessive dilution and helps maintain a balanced shareholder base.
These measures highlight Vinanz’s commitment to safeguarding long-term shareholder value while leveraging institutional capital.
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Leadership Emphasizes Strategic Growth Amid Favorable Timing
David Lenigas, Chairman of Vinanz Limited, expressed his appreciation for the timely financial support, emphasizing the company’s commitment to swiftly deploying the funds into its Bitcoin operations.
He noted that this capital injection is crucial for accelerating Vinanz’s growth in the digital asset space, especially during a time when access to capital is both competitive and critical.
With the possibility of a dual listing on Nasdaq on the horizon, this funding positions Vinanz to expand its market reach and deepen its presence in the Bitcoin economy.
The announcement reflects confidence in the company’s strategic direction and outlines a clear path forward for its expansion efforts.
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