The company Arcane Crypto intends to go public by taking over the listed company Vertical Ventures in reverse. In order to finance this, the Swedish company wants to put billions of new shares on the market.
If you want to find more details about the reverse takeover of Vertical Ventures by Arcane Crypto and to be the first to read the most important business news in the world, download for free the Born2Invest mobile app. Our companion app provides access to informative crypto news, technical stock analysis as well as investing commentary from experts. Users can enjoy digital experience and integration of the latest market information.
IPO planned through acquisition
The Norwegian crypto investment company Arcane Crypto plans its IPO through a so-called “reverse takeover” of the Swedish company Vertical Ventures, the company announced in a press release.
Vertical Ventures intends to take over Arcane for an enterprise value of almost $32.5 million (300 million Swedish kroner), which corresponds to approximately €28.5 million. Vertical Ventures is already trading on the alternative stock exchange NASDAQ First North, where Arcane is also planning its IPO.
Despite the takeover by Vertical Ventures, Arcane is to become the majority shareholder with a 92.5 percent stake in the company and will also officially trade under its name. The large difference in the company shares is due to the inconsistent values of the two companies. For example, Vertical Ventures’ balance sheet for 2019 showed an asset value of approximately $225.000 (2.18 million kroner), which corresponds to approximately €200,000.
Share issue as a source of financing
The reverse takeover allows Arcane to avoid the complex process of an IPO. To finance it, Vertical Ventures intends to throw more than 6.6 billion new shares onto the market, each of which can be purchased at less than half a cent.
In November 2019, Arcane appointed Eric Wall, who had previously headed the Cryptocurrencies and Blockchain division at Swedish financial services provider Cinnober, which is now part of NASDAQ, as the new CIO.
Arcane’s CEO Torbjorn Bull Jenssen explained the acquisition by saying that, if the IPO is successful, the company will be able to reach a broader investor base and expand its growth and offering.
The final approval is still pending
However, before the takeover is completed, the shareholders must first confirm it, as CoinDesk reported. NASDAQ North must also approve the new corporate structure before the company can be listed on the stock exchange again. The takeover is expected to be completed in the second half of 2020, Arcane announced.
The news about the takeover have been very well received on the market. Vertical Ventures shares have increased 53% since the market open on July 2nd.
Arcane develops and invests in projects that mediate between cryptocurrencies and digital assets. The company is currently based in Stockholm, London and Oslo and is engaged in cryptocurrency payment technology, crypto-electronic and digital asset liquidity provision and private and institutional crypto-fiat exchanges. The company also runs a research department, the news portal Kryptografen and a hedge fund.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanzen.net, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
International fintech companies Cred and Responsive enter Nexi Open
Cred is a financial technology company based in Tel Aviv and operating in the United States and Western Europe. The...
BHV Partners plans to triple its portfolio and create an investment fund in 2021
BHV Partners, a venture builder specialized in the health sector is looking to invest in up to 15 companies next...
The Colombian Senate approves the legalization of recreational cannabis
The Colombian Senate approved the first initiative to regulate the use of cannabis by adults and paves the way for...
Endesa and Parkia join forces to install electric recharging points
Endesa hopes to close the year with 8,000 recharge points installed in Spain, both public and private, and multiply them...
Caldas Gold, the company that exploits the legendary Marmato gold mine
The company Caldas Gold will take the name Aris Gold, as recently announced, after initiating financing with investors, which will...
Featured7 days ago
Naturgy and Eni to share Union Fenosa Gas and seek to solve the dispute with Egypt
Featured5 days ago
How are ESG company news deciphered with Artificial Intelligence
Business7 days ago
How to identify customer tastes? Wine innovation may hold the key.
Africa7 days ago
A budget of 123.5 billion francs for construction work on Bugesera Airport