Bitcoin firm BTCS Inc (OTCMKTS:BTCS), known as Bitcoin Shop in the past, has informed the Securities and Exchange Commission (SEC) that it is registering an aggregate of 39,508,960 shares of common stock, $0.001 par value per share.
The shares are up for resale by certain of BTCS’ shareholders.
The select shareholders may offer to sell the aggregate 39,508,960 shares at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated prices, and will pay all brokerage commissions and discounts attributable to the sale of such shares. They will receive all of the net proceeds from the offering of their shares.
Resale Shares comprise:
- 17,392,276 shares of Common Stock;
- 10,825,000 shares of Common Stock issuable upon exercise of outstanding warrants exercisable at $0.10 per share, which warrants were issued in a private placement that closed on January 19, 2015;
- 10,791,684 shares of Common Stock issuable upon exercise of outstanding warrants exercisable at $0.375 per share, which warrants were issued in a private placement that closed on April 20, 2015;
- 500,000 shares of Common Stock issuable upon exercise of outstanding warrants exercisable at $0.31 per share, which warrants were issued to a service provider.
Common Stock outstanding before and after this offering:
- 157,108,508 before this offering;
- 179,225,192 after this offering.
Below is the list of shareholders that may sell the shares in question.
Although BTCS reiterates that net proceeds from the sale of the shares will go to shareholders solely, it adds that it will gain proceeds from the exercise of warrants. These proceeds are set to be used for what the company dubbed “general corporate purposes”.
Any proceeds are of crucial importance to BTCS, which admitted that it needs to raise extra financing in order to maintain its operations, after incurring a heavy $4.6 million net loss in the first half of 2015.
Shares in the company closed at $0.135 on Friday, down 1.46% for the day.
Chart source: Google Finance.
To view the SEC filing about the shares registration, click here.