Miner Tomorrow Crypto Looks to Go Public Through SPAC Merger
The proposed merger is expected to close in the fourth quarter, subject to stockholder and regulatory approval.
Tomorrow Crypto, a bitcoin (BTC) and ether (ETH) mining infrastructure company, is looking to go public through a proposed a merger with Nasdaq-listed blank cheque firm Globalink Investment (GLLI), a special purpose acquisition company.
- The proposed merger values Tomorrow Crypto at $310 million and is expected to close in in the fourth quarter of this year, subject to stockholder and regulatory approval, according to a Securities and Exchange Commission (SEC) filing on Thursday.
- The transaction is expected to deliver gross proceeds of up to $131.7 million, which includes up to $116.7 million of cash held in Globalink's trust account. Net proceeds will be used for working capital and growth capital expenditure.
- Tomorrow Crypto is a U.S.-based firm planning to establish infrastructure at facilities for institutional-grade clients to mine bitcoin and ether.
- Mergers with special purpose acquisition companies (SPAC) have been a prevalent means of going public in recent years. The U.S. Securities and Exchange Commission (SEC) reported in March that over half of all initial public offerings in 2020-2021 were conducted using a SPAC.
- However, such listings will be subject to sterner regulatory scrutiny going forward. The SEC said it would propose “specialized disclosure requirements with respect to, among other things, compensation paid to sponsors, conflicts of interest, dilution and the fairness of these business combination transactions.”
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