First Growth Funds stock soars 40% following blockchain, cryptocurrency announcement


Even a whiff of the world’s hottest technologies — blockchain and cryptocurrency — are enough to get investors very excited.

First Growth Funds (ASX:FGF) surged as much as 40 per cent on Thursday after appointing a blockchain and cryptocurrency expert to its board.

Blockchain — a technology that provides a public ledger of digital transactions — is best-known as the foundation for “cryptocurrencies” such as bitcoin.

First Growth shares have quadrupled since September when it first announced it had “actively reviewed” several deals around blockchain and cryptocurrency.

On Thursday the board cemented that position with the appointment of Aussie tech executive Anoosh Manzoori.

The shares hit a high of 1.8c on Thursday, before closing up 31 per cent at 1.7c.

That’s despite no indication as to what kind of blockchain or cryptocurrency related transaction the company might pursue.

All shareholders know is that any investment will be through FGF’s new digital currency subsidiary, ICO-N.

“The purpose of the establishment of this subsidiary will be for a direct investment into a cryptocurrency exchange and blockchain technology,” First Growth told investors at the time, as well as flagging “advanced stage” negotiations in cyber security.

Mr Manzoori will draw on his experience as chief of advisory firm Shape Capital and member of the government’s industry, innovation and science program.

Mr Manzoori is also a director of ASX-listed “Internet of Things” company CCP Technologies (ASX:CT1), which monitors control points such as temperature or water quality for food safety.

First Growth has reported no sales revenue in the past year — and burned $535,000 in the last quarter, leaving $2.1 million in the kitty.

This article first appeared at Stockhead, Australia’s leading news source for emerging ASX-listed companies. Read the original article here. Follow Stockhead on Facebook or Twitter.

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