Belgravia Hartford Capital Inc. has announced key updates regarding its management of Bitcoin assets and financial instruments. This move aims to adapt to market changes while enhancing shareholder value. Notable aspects of this update include a significant repricing of its convertible debenture and a comprehensive overview of its current Bitcoin holdings.
Adjustments to the convertible debenture
The company has successfully negotiated with Round13 Digital Asset Fund to amend the terms of its US$5 million convertible debenture. The conversion price will decrease from C$0.71 to C$0.125 per share, pending approval from the Canadian Securities Exchange (CSE). This adjustment aligns the conversion terms with current market conditions and aims to encourage the conversion of the debenture into equity.
Triggering conversion provisions
According to the new terms, if Belgravia’s common shares trade at or above C$0.17 for ten consecutive trading days, the company can activate the conversion provision. Following this announcement, Round13 will have 30 days to convert its debenture into common shares at the new price of C$0.125 per share. Any amounts not converted during this period will revert to the original conversion price of C$0.71 for the remainder of the debenture’s term.
This strategic adjustment aims to facilitate a substantial conversion of the debenture into equity, effectively reducing outstanding debt and improving Belgravia’s balance sheet. This approach seeks to enhance long-term investor interests while aligning with the company’s growth objectives.
Current status of the Bitcoin treasury
As of October 31, Belgravia’s Bitcoin treasury consists of a total of 83.14 BTC, distributed as follows:
- 26.55742 BTC– Fully owned by Belgravia, acquired at an average price ofUS$117,355.93per BTC.
- 42.37753 BTC– Obtained using funds from the Round13 convertible debenture, with an average acquisition price ofUS$117,986.77per BTC.
- 14.21448 BTC– Purchased through corporate credit facilities, averagingUS$105,517.72per BTC.
This diversified acquisition strategy underscores Belgravia’s methodical capital allocation approach and reflects its commitment to treating Bitcoin as a fundamental treasury asset.
Framework for Bitcoin standard conversion
Belgravia has established a framework called Bitcoin Standard Conversion, under which the modified debenture is fully backed by Bitcoin. If Round13 chooses not to convert the debenture by its maturity date, the associated 42.37753 BTC will be returned to them. This framework aims to mitigate potential risks associated with Bitcoin price fluctuations while ensuring stability in the company’s balance sheet and treasury.
Mehdi Azodi, President and CEO of Belgravia Hartford, commented on these developments: “This repricing is a strategic and shareholder-centric move. It allows for flexible conversion at a competitive market level, alleviates balance-sheet pressure, and strengthens our alignment with long-term shareholders and Bitcoin-based financing strategies. We believe this restructuring positions us among the pioneering Canadian public issuers incorporating Bitcoin into their capital framework, reinforcing our commitment to innovation, transparency, and financial robustness.”
Clarification of recent equity financing
The company also clarified its recent equity financing figures. On July 16, Belgravia completed an equity financing round, issuing a total of 15,543,822 units at a price of C$0.25 per unit, generating gross proceeds of C$3,885,955.50. This reflects a slight adjustment from the previously reported 16,091,822 units and C$4,022,955.50 in gross proceeds.
It is important to note that these securities have not been registered under the United States Securities Act of 1933 and cannot be offered or sold within the United States or to U.S. persons unless appropriately registered or exempt.
About Belgravia Hartford
The company has successfully negotiated with Round13 Digital Asset Fund to amend the terms of its US$5 million convertible debenture. The conversion price will decrease from C$0.71 to C$0.125 per share, pending approval from the Canadian Securities Exchange (CSE). This adjustment aligns the conversion terms with current market conditions and aims to encourage the conversion of the debenture into equity.0