Cryptocurrency Platform Diginex Aims Nasdaq Listing Through SPAC Merger By September

Blockchain solutions provider Diginex is planning to go public in the United States through a merger with a special purpose acquisition company, or SPAC, within the current quarter ending in September.

What Happened

The $300 million reverse merger with 8i Enterprises Acquisitions Corp JFK, which would see the company's shares list at the Nasdaq Stock Exchange, had received the United States Securities and Exchange Commission approval in February.

"Our planned listing on Nasdaq is further testament to our commitment to compliance, regulation and transparency, all of which are core principles of [Diginex,]" the company's CEO Richard Byworth said in a statement.

The blockchain financial services company announced the same time it is launching a digital assets exchange that offers derivatives trading.

The cryptocurrency exchange desk, named EQUOS.io, will be based in Singapore — rather than Diginex's base in Hong Kong — with the company describing the digital asset regulations of the city-state as "progressive."

Why It Matters

SPACs, also known as blank check companies, have seen a resurgance of late, with 39 companies using reverse mergers to raise $12.3 billion this year as of July, Business Insider reported.

Last month, electric vehicles firm Nikola Corporation NKLA debuted on the bourses after a merger with VectoIQ Acquisition. Velodyne Lidar Inc, a self-driving vehicle radar maker, also said this month that it is going public by merging with a blank-check company.

Price Action 

Another EV maker Fisker Inc. is also reported to be considering the SPAC route. 

8i shares closed nearly 1% lower at $10.24 on Wednesday.

Photo courtesy: bfishadow on Flickr