Altcoin News: Blockchain-Company Diginex Will Enter the Nasdaq Exchange Through a Reverse Takeover

July 11, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Diginex blockchain company may soon be listed on the US Nasdaq Stock Exchange after merging with 8i Enterprises Acquisition Corp.

Bloomberg cites sources “familiar with this situation” and states that Diginex Ltd — a company providing blockchain solutions and consulting services — will soon announce a merger with 8i Enterprises Acquisition Corp.

Since 8i is already in the Nasdaq listing, the deal will allow Diginex to become a public company for registration on the stock exchange by acquiring an already registered company and avoiding the regulatory complexities of the formal IPO process. The deal reportedly still requires approval from the US Securities and Exchange Commission (SEC).

Sources on Bloomberg reported that in case of completion of the transaction, the cost of the Hong Kong Diginex will be about $276 million. Shareholders of Diginex will receive 20 million ordinary shares of 8i worth $10 each. Both companies refused to comment on the merger, notes Bloomberg.

Reverse takeover with the purpose of listing on stock exchanges is a technique that is often used by cryptocurrency and blockchain companies. So the cryptocurrency bank Galaxy Digital hit the Toronto Stock Exchange listing last summer. Huobi last year also announced plans to enter the Hong Kong Stock Exchange through a merger of Pantronics. In January, OKex bought LEAP Holdings Group for $60 million to enter the Hong Kong Stock Exchange.

Author: Marko Vidrih