On Monday, Nasdaq-listed company Verb Technology announced major changes with the adoption of a crypto treasury in The Open Network’s TON. Here are the details of this financial transaction.
A publicly traded company chooses TON to create a crypto treasury
Every time we think we’ve seen it all when it comes to publicly traded crypto treasuries, we’re surprised by a new announcement. This time, it’s Nasdaq-listed Verb Technology Company that’s making headlines.
The company has entered into a reverse merger agreement with more than 110 investors to rename itself TON Strategy Co. for a $558 million deal. As the new name suggests, the goal is to establish a treasury in TON, the native token of The Open Network blockchain. While the exact amount of this treasury has not been specified, the company says it intends to “use the majority of the net proceeds from the offering to acquire TON.”
Following this reverse merger, Manuel Stotz, president of the TON Foundation, will become the new executive chairman of TON Strategy. In addition, it should be noted that Stotz is also the founder and CEO of Kingsway Capital, the investment fund that led this financial transaction, which is expected to be finalized on August 7. Peter Smith, CEO and co-founder of Blockchain.com, who will also become the company’s new special advisor, commented on the transaction:
The TON ecosystem marks a major milestone in the global adoption of cryptocurrencies, and I am proud that we are leading efforts to drive investment in the future of digital commerce. I am confident that the combined expertise of this new leadership team, which combines crypto and institutional expertise, will drive blockchain innovation forward.
Unsurprisingly, we see once again that we are dealing with the typical profile of a company that has been struggling on the stock market for years, with its share price down 99.99% from its all-time high (ATH).
Even taking into account the announcement, Verb Technology is now capitalized at only $28.95 million on the Nasdaq.
On Monday, VERB shares rose nearly 115% to $20.42:
At the time of writing, the price of TON stands at $3.32 per unit, down 7.16% over 24 hours. With a market capitalization of $8 billion, it ranks as the 27th largest cryptocurrency.
