Crypto exchange OSL operator completes stock top-up to raise $90 million

BC Group, the Hong Kong listed company that operates the crypto exchange OSL, has completed the issuance of new stocks.

In a public disclosure on Wednesday, BC Group said it issued 45 million new shares at a subscription price of HK$15.5 on January 13, which in total is worth HK$697 million, or $90 million.

The transaction follows an announcement made by BC Group on January 6 where the firm said it entered an agreement with a stock placing agent in order to issue the 45 million new shares.

BC Group said it plans to use the net proceeds from the raise to maintain and expand OSL’s trading platform and digital asset services.

In particular, the firm said it would allocate about HK$225 million, or $30 million, for “maintaining sufficient liquid capital to satisfy SFC [Securities and Futures Commission] license requirement of the licensed entity and the expansion of prime brokerage business.”

BC Group said on December 15 that OSL was granted the license by the Hong Kong financial watchdog to operate a regulated brokerage and automated trading service for crypto assets in Hong Kong. 

The firm didn’t break down the names of the institutions that invested in the latest round. But according to a January 11 disclosure, Fidelity International, a spin-off from the U.S. financial services giant Fidelity Investments, increased its ownership of BC Group on January 6 by another 3.37 million shares – also at a subscription price of HK$15.5.

The transaction is worth about HK$52 million, or $6.7 million, and follows Fidelity International’s previous $14 million investment into BC Group in February 2020. 

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