Hong Kong-based cryptocurrency and blockchain solution company, Diginex LTD., intends to go public in the United States through a reverse merger with 8i Enterprise Acquisition Corp., according to a press release from the firm.
According to sources familiar with the matter, the transaction could be announced as early as Wednesday in New York City, although the representative of 8i and Diginex declined to comment on the development.
Diginex will be listed on tech-heavy NASDAQ, following a deal reached with the so-called blank-check company, 8i. This deal could value Diginex at about $276 million, including debts after the proposed valuation increased during the late-stage negotiation from $233.6 million, the sources revealed.
The company’s shareholders are likely to receive 20 million ordinary shares valued at $10 per the 8i shares.
Diginex offers advisory services and helps in the development of blockchain tools for companies, including the payment firm, Fidelity National Information Services.
The company hopes to increase its exposure to digital assets as well as the underlying blockchain technology through financial institutions and Investors. The sources further revealed that the company is also considering to launch its virtual currency marketplace.
“Cryptocurrency companies such as Diginex have been skipping IPOs and instead pursuing a so-called backdoor listing to access the public market. IPO can take longer to pull off and involve more regulatory hurdles,” the sources said, adding that, Diginex’s proxy filling will still need to be approved by the U.S Securities and Exchange Commission (SEC).
The blockchain company intends to hire Will McDonough, the former vice president at the Goldman Sachs Group Inc., as an executive to facilitate in its expansion to the United States.
In what could perhaps be considered evidence, to the fact that the Nasdaq has interest in Bitcoin, the exchange was reportedly testing Bitcoin-based product under the CXERX Indice, on its platform.
It is no more a news that Nasdaq is courting Bitcoin, considering that the stock exchange is poised to roll out Bitcoin Futures and also providing its market surveillance technology to help combat crypto market manipulation.
Correction (July 11, 2019): We adjusted the title and fixed an error in the article after Diginex clarified that it’s not actually an IPO but a share exchange agreement.