How will Bithumb Cryptocurrency Exchange use Reverse Merger Deal to Go Public in the USA?
An investment company named Blockchain Industries Inc has said that they have signed a binding agreement (letter of intent) with Bithumb cryptocurrency exchange’s holding company (Singapore-based BTHMB Holdings) for the reverse merger deal. The deal was signed on Tuesday. Blockchain Industries Inc reportedly focuses on cryptocurrency as well as blockchain industry. The concerned company has also carried out trading on the OTC market.
What is a Reverse Merger Deal?
Reverse merger is nothing but a Reverse IPO (Initial Public Offer). In this process, a publicly-listed company is acquired by a private company for bypassing the conventional IPO route, which is generally lengthy as well as complex.
What’s the Way Forward?
Reports say the combined entity (after the deal falls into place) will be known as Blockchain Exchange Alliance (BXA). The combined entity will become the first cryptocurrency exchange listed in the United States of America. The announcement also said that they plan to complete the reverse merger deal by March 1, 2019.
Singapore-based BTHMB Holdings has already agreed to make a payment of US$1 million towards the agreement. That sum of money will be kept in an escrow account. This account will be reviewed by both the involved parties.
CEO of Blockchain Industries, Patrick Moynihan, said that the reverse meager deal between the two companies will help the blockchain sector with enhanced liquidity, greater accessibility, and expansion. He went on to say:
“By merging with BTHMB/BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.”
The press release also makes it clear that one of the main objectives of BTHMB Holdings to strike this deal is expansion of business operations in North America.
Byung Gun Kim led Singapore-based consortium that bought 38% of Bithumb’s stake back in October 2018, while speaking on Tuesday’s reverse merger deal said:
“By unifying our businesses, we benefit from the focused expertise of Blockchain Industries. As a result, … we expect quality results from this merger.”
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