REG - Satsuma Tech PLC - Second CLN Raises Gross Proceeds of £163.6m

Satsuma TechnologyAnnouncement

06/08/2025 08:15

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RNS Number : 2056U  Satsuma Technology PLC  06 August 2025

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.

 

 

6 August 2025

 

Satsuma Technology Plc

 

('Satsuma' or the 'Company')

 

LSE: SATS

 

Frankfurt Exchange: NM1

 

Issue of Second Convertible Loan Note Raises Gross Proceeds of £163.6m

(USD $217.6m)

 

Satsuma Technology PLC (LSE: SATS), a public company pioneering the
convergence of decentralised AI and Bitcoin treasury strategy, is pleased to
provide an update on the closing of its minimum £100m raise, as initiated on
24 June 2025.

 

The Board is delighted to confirm that the second secured convertible loan
note round that closed on 28 July 2025, successfully raised gross proceeds of
approximately £163,660,000, being circa $217,650,000 USD (the "Fundraising"),
63.66% over the minimum target. As a result, the relevant loan notes (the
"Loan Notes") will be issued to the subscribers by Satsuma.

 

The Board is thrilled to have received strong backing for the vision of
Satsuma, both from specialist global funds and exchanges focused on digital
assets, as well as large institutional equity funds. Satsuma is authorised
to confirm the names of the following subscribers:

 

·    ParaFi Capital - Lead Investor

·    Arrington Capital

·    ATW Partners

·    Avalon Funds Management

·    Borderless Capital

·    BTC Opportunity Fund

·    Blockchain.com

·    DCG

·    FalconX.io

·    G20 Strategies

·    Hypersphere Capital Management

·    Hyla Funds

·    Kenetic Capital

·    Kingsway Capital

·    Kraken.com

·    LVNA Capital

·    Mythos

·    Off The Chain Capital

·    Origin Protocol

·    Pantera Capital

·    Primitive Ventures

·    RAA Ventures

·    Stratos

·    Tiger Royalties and Investments Plc

 

In addition to those noted above, Satsuma has secured investments into the
Fundraising from several institutional equity investment funds based in
London. These funds are some of the most prevalent names in the UK equity
markets and globally have over £300bn AUM in aggregate between them.

 

The Loan Notes will convert into ordinary shares of £0.001 each in the
capital of the Company ("Ordinary Shares") at £0.01 per share subject to (a)
shareholders approving the necessary resolutions to authorise the directors to
allot and issue free of pre-emption rights and (b) the publication by the
Company of a prospectus. A notice of a general meeting of the Company will be
published shortly to present the relevant resolutions to shareholders. The
Company has submitted a draft prospectus to the Financial Conduct Authority
for approval.

 

The net proceeds of the Fundraising will be used to cement Satsuma's position
at the forefront of decentralised AI and bitcoin treasury strategies by
growing the existing operations (such as through the hiring of developers),
with further capital representing not less than three months' of working
capital being retained in cash. The balance of the Fundraising will be
retained within the bitcoin treasury operated by Satsuma Technology Pte Ltd
("Satsuma Pte"), the wholly-owned and Singapore-registered subsidiary of
Satsuma.

 

Security

 

The Loan Notes have been secured by first ranking security granted by Satsuma
and Satsuma Pte. A security trustee has been appointed to represent the
subscribers. Following conversion of the Loan Notes the security granted by
Satsuma and Satsuma Pte will be automatically released.

 

BTC settlement

 

A significant number of subscribers requested the ability to subscribe using
Bitcoin and, as a result, the Company accepted 1,097.29 BTC (the "Fundraising
BTC") in lieu of £96,875,000 in cash. The Fundraising BTC is held by Satsuma
Pte.

 

The Board agreed to accept settlement in BTC to further Satsuma's role as a
pioneer in bitcoin treasury strategy implementation. The Board further made
this decision because the purpose of the Fundraising was to raise finance and
BTC is a fungible non-fixed asset. The number of Bitcoin representing the
Fundraising BTC was calculated by a fixed daily rate providing a 24-hour
subscription window.

 

Prior to any issue of Ordinary Shares pursuant to the conversion of the Loan
Notes subscribed for by the Fundraising BTC, Satsuma will obtain a valuation
report in accordance with s.593 Companies Act 2006 (the "Act") and will comply
with the relevant provisions of the Act.

 

To ensure transparency with respect to the proceeds of the Fundraising and the
financial position of Satsuma and Satsuma Pte, the Board intends to publish
unaudited interim statements for the period ending 6 August 2025 (being the
day after the settlement of the Fundraising proceeds).

 

Further, in recognition of its leadership in new and emerging asset classes,
Satsuma intends to maximise transparency by releasing periodic financial
updates in the form of unaudited financial statements with the initial
intention for it to be on a monthly basis.

 

 

Henry K. Elder, CEO of Satsuma Technology, commented:

 

"This moment represents a landmark validation of our core belief: that fusing
a Bitcoin-native treasury with decentralised AI is a paradigm shift in
corporate value creation. To have our initial target so significantly
oversubscribed is a profound vote of confidence, resulting in the largest
fundraise for a London company with a bitcoin treasury by a significant
margin. The fact that many chose to subscribe in the first-ever bitcoin
subscription in London speaks to their trust in our ability to innovate and
execute. We are now fully equipped, deeply motivated, and more convinced than
ever that London is the preeminent market from which to execute on our vision
and build a global leader that will define this new category."

 

ENDS

Enquiries:

 Satsuma Technology PLC                                        Tel: +44 (0)20 3855 8888

 Matt Lodge, Chairman

 Henry Elder. CEO
 Yellow Jersey PR

 Charles Goodwin / Annabelle Wills                             Tel: +44 (0)7747 788 221

                                                               +44 (0)7775 194 357

 First Sentinel Corporate Finance Limited - Financial Adviser

 Brian Stockbridge                                             Tel: +44 (0) 20 3855 5551

 Paul Shackleton
 Fortified Securities - Broker

 Guy Wheatley                                                  Tel: +44 (0) 7493 989014

 

About Satsuma Technology PLC (SATS.L)

Headquartered in London, the Company is a publicly-listed technology company
focused on decentralised artificial intelligence and bitcoin treasury
management. The Company is building and investing in AI-based decentralised
infrastructure and applications while operating a treasury-first model,
aligning itself with the most secure monetary network in history - Bitcoin.

 

Website: www.satsuma.digital (http://www.satsuma.digital)

 

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