A blockchain and cryptocurrency firm is soon to go public on Nasdaq in the U.S., according to Bloomberg.
In a report Wednesday, the news provider cited sources "familiar with the matter" as saying that Diginex Ltd., a company providing blockchain solutions and consultancy services, is soon to announce a merger with 8i Enterprises Acquisition Corp.
With 8i already a Nasdaq-listed firm, the deal would allow Diginex to go public via a backdoor listing and avoid the regulatory complexities of a formal IPO process. The deal would reportedly still require approval from the U.S. Securities and Exchange Commission.
The Bloomberg sources said that, if completed, the deal would see Hong Kong-based Diginex valued at around $276 million including debt. Diginex shareholders would receive 20 million ordinary shares in 8i, valued at $10 each.
Both firms declined to comment on the merger, Bloomberg said.
Last month, Diginex teamed up with FIS, a financial services technology firm, to launch a trading tool aimed to help investors manage digital asset portfolios, the firm says on its website.
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The reverse IPO, or reverse merger, method of going public has been attempted by other crypto firms. Early this year, Bithumb and OKCoin – both crypto exchanges – attempted to take over public companies with the aim of achieving backdoor listings on stock exchanges in the U.S. and Hong Kong, respectively.
Nasdaq image via Shutterstock