Norwegian cryptocurrency investment firm Arcane Crypto is planning to list on Nasdaq Nordic's alternative stock exchange through a reverse takeover.
- On paper, Arcane will be fully acquired by Swedish firm Vertical Ventures – which is listed on Nasdaq First North – for just under SEK 300 million (~$32 million).
- However, Arcane will be the majority owners of Vertical Ventures, which will trade under the Arcane name.
- To fund the $32 million takeover, Vertical Ventures will issue more than 6.6 billion new shares – each at half a U.S. cent.
- In November, Arcane tapped Eric Wall, blockchain lead at Cinnober, which was acquired by Nasdaq in 2018, as its new CIO.
- Arcane CEO Torbjorn Bull Jenssen said that if the listing is successful, the firm would appeal to a wider investor base.
- The latest deal will have to be approved by shareholders; Nasdaq North will also have to sign off on the new company structure before it can be re-listed.
- Vertical Ventures' shares have jumped on the news, and are up 53% since the market open.
- Both sides are now performing due diligence, with the takeover expected to be completed in the second half of this year 2020.
EDIT (July 2, 13:40 UTC): A previous version of this article stated Arcane was a fund and that it had signed an LOI with Tongdow E-Commerce, this has now been corrected.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.