Animoca Brands to Go Public on Nasdaq Via Reverse Merger

Hong Kong-based crypto-focused company Animoca Brands has revealed its plan to secure a public listing on the Nasdaq stock exchange. It seeks to achieve this through a reverse merger with Currenc Group, a fintech company specializing in artificial intelligence (AI).

Following the announcement, Currenc Group’s stock, CURR, soared by over 30% to $3.78 at press time. This indicates support from the fintech firm’s ecosystem regarding the latest merger announcement.

Animoca Brands to Go Public

It is worth noting that Animoca Brands’ pursuit of a reverse merger differs from the traditional initial public offering (IPO). This is because a reverse merger occurs when a private company acquires a majority stake in a public firm. This way, the private firm does not have to spend as much as it would have if it had taken the IPO route.

As part of the potential deal, Currenc Group will purchase 100% of Animoca Brands’ shares. Next, it would issue new shares, of which Animoca Brands’ investors will collectively own 95%. Currenc’s existing shareholders will hold the remaining 5% of the newly issued shares.

However, the deal remains pending until both parties complete due diligence and agree on the terms. The deal is expected to be completed by the end of next year.

Earlier this month, Animoca Brands’ co-founder, Yat Siu, hinted that the company seeks to go public at the heart of New York. This is because, unlike various countries, the United States is more receptive to innovations, such as blockchain, and offers broader visibility.

Meanwhile, this is not Animoca Brands’ first foray into the public market. In January 2015, the crypto-focused company listed on the Australian Securities Exchange (ASX) using the ticker AB1. Fast-forward to March 2020, and the stock exchange delisted the stock, citing violations of listing regulations. One such violation was its involvement in crypto activities.

Today, Animoca Brands specializes in cryptocurrencies, non-fungible tokens (NFTs), the metaverse, and other blockchain-based businesses.

More Crypto Firms Pursue Public Listing

Like Animoca Brands, various crypto-focused platforms have begun their pursuit of a public listing in the U.S.

Last week, MetaMask’s creator Consensys disclosed its plan to launch an IPO. It has already tapped JPMorgan and Goldman Sachs to make this happen. Crypto exchange Kraken has also raised its valuation by $500 million, as part of its effort to go public in the U.S. next year.

Others, like crypto exchange Gemini and stablecoin issuer Circle, have gone public in the country.