DIGITALX LIMITED — Capital/Financing Update 2017

Mar 19, 2017

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ASX ANNOUNCEMENT

20[th] March 2017

DigitalX secures financing

DigitalX Limited (ASX: DCC and “the Company ”) is pleased to announce it has secured up to AU$1m in financing from Ironside Capital (formerly Merchant Corporate) via the issue of converting notes.

The funds received will be applied to marketing and distribution for the Company’s Blockchainenhanced remittance application, AirPocket, increasing the path to market for the Company’s distributed ledger technology enterprise solution, AirID and to provide working capital. An initial AU$300,000 will be available this month.

The Board considers the terms of the notes are commercially reasonable and represent a price conversion at a premium to the current market price of DCC shares. The key terms of the notes are as follows:

are as follows:
**Item **	Summary
Face Value	AU $1,000,000 via 100 units of converting notes at $10,000 per unit over 4 tranches. The first tranche is $300,000. Each unit receives 100,000 options expiring 15 December 2018 at the lower of 6c or 20% premium to the next capital raising. The remaining 3 tranches are based on conservative but commercially sensitive KPI's
Maturity Date	1 year
Interest Payment	15% p.a. calculated monthly and paid quarterly
Security	Notes will be secured by DCC’s assets
Conversion Price	5c
Conversion Period	May convert at any time at 5c per share (plus the issue of the relevant options)
Exit Fees	6m DCC Shares onconversionor repayment oftheNotes
Raising Fee	6% plus 2 year options at the lower of 6c or 20% premium to next capital raising
3-month Corporate Advisory Fee	US$30,000 plus 6m DCC shares based on commercially sensitive KPI's
Shareholder **Approval **	Shareholder Approval will be sought at a forthcoming shareholder meeting for the entry into the notes for tranches 2 through 4 of the convertible notes and the ratification of the first tranche

-ENDS-

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For further information, please contact: DigitalX Limited Investor Enquiries:

Leigh Travers Chief Executive Officer T: +61 439 376 847

David Salmon E: dsalmon@merchantgroup.com.au T: +61 416 626 836

About DigitalX Limited

DigitalX is a Blockchain-enhanced software solutions group disrupting the payments industry. The Companys flagship product, AirPocket allows consumers to make secure and cost-effective money transfers worldwide. Companies can use DigitalX’s AirID technology to leverage the benefits of the Blockchain.