The Smarter Web Company has secured shareholder approval for all three resolutions needed to create its proposed MORE perpetual preferred shares, marking a historic milestone as the UK's first Bitcoin-backed preferred stock. According to the company's September 28 general meeting results, shareholders approved all three resolutions covering changes to its articles of association, authority to allot preferred shares and permission for the company to make market purchases of the securities. Resolution 1, which amended the company's articles of association, received 163.8 million votes in favor, representing 99.86% of votes cast, with only 231,386 votes (0.14%) against the proposal. This approval positions Smarter Web to potentially list on the London Stock Exchange Main Market with a groundbreaking Bitcoin-backed security structure.
The proposed MORE preferred shares target up to £25 million in gross proceeds through an initial public offering to institutional investors and eligible UK retail investors. As reported by Smarter Web, the company plans to seek between £15 million and £25 million by offering the securities to institutional investors in the UK and eligible UK retail investors through participating brokers, wealth managers and investment platforms. A minimum of £10 million must be raised for the IPO to proceed, with at least three firms required as registered market makers in MORE when the securities are admitted, while a minimum of 50% of the preferred shares must be held in public hands. If any of these conditions are not met, the company said the IPO would not proceed.
The preferred shares would carry a cumulative variable rate preferential dividend paid weekly and would not give holders voting rights at general meetings. According to the company's proposal, investors would have a liquidation preference, while the company would retain the right to redeem the shares. The company identified recurring operating cash flows, cash reserves, its Bitcoin treasury and continued access to public capital markets as potential sources for meeting dividend obligations attached to the securities. CEO Andrew Webley stated that MORE could provide another source of long-term capital alongside the financing options already available to the company.
The proposed preferred shares would give the company another financing route as it continues operating a balance sheet centered on Bitcoin. As reported by crypto.news, TD Cowen analysts said earlier in September that MORE could provide another source of long-term capital alongside the financing options already available to the company. The investment bank raised its Smarter Web price target to £0.73 from £0.64 at the time while maintaining its Buy rating. The company has previously used equity sales, convertible financing and Bitcoin-backed borrowing to fund its treasury strategy, including drawing £18 million through a Coinbase credit facility in May with leverage at approximately 12.19%. The company's Bitcoin treasury currently stands at 2,747 BTC following recent purchases, with Bitcoin remaining its primary treasury reserve asset under its long-term 10 Year Plan.
The proposed IPO still requires an FCA approved prospectus before the company can seek admission of MORE to the London Stock Exchange Main Market. According to the company's original proposal, shareholder approval did not guarantee the preferred shares would ultimately be issued or that the IPO and admission would proceed. If the preferred share IPO proceeds, Smarter Web plans to establish a separate ATM facility under which Tennyson Capital Partners would be able to sell preferred shares and raise capital over time, subject to market conditions. This historic approval represents a significant milestone for Smarter Web as it positions itself as a pioneer in Bitcoin-backed securities, potentially opening new avenues for institutional and retail investors to access Bitcoin exposure through traditional stock market mechanisms.
