The firm has entered a contract with special-purpose company Goldenstone Acquisition Ltd, through which it will pursue the listing.
Goldenstone Acquisition Ltd, a special-purpose acquisition firm (SPAC), has declared plans to go public with blockchain-based payments firm Roxe Holding Inc.
As per the Wednesday announcement, the SPAC has approved a $3.6 billion merger with the global blockchain payments firm, which will see Roxe listed on the Nasdaq under the ticker ROXE. Roxe is a global payments company that offers both business-to-business and consumer payments services, with a focus on blockchain technology.
Reuters report says, citing insider sources, that no current stockholders of Roxe are planning to sell their stake after the merger. On Tuesday, Roxe stated that certain shareholders may qualify for earnouts if the listed share price is reached.
The agreement comes into an unfavorable market environment, in which cryptocurrencies have dropped in value and investors have largely abandoned special-purpose acquisition firms of this sort due to poor performance. The total market capitalization of cryptocurrencies dropped to less than $1 trillion, while Bitcoin has now dropped to its lowest level since mid-2021.
The long slide in crypto has been driven by alarms about the winddown of numerous major participants. Sentiment has depreciated as a result of growing inflation and interest rates and weaker macroeconomic signals.
Additionally, the agreement follows months after Goldenstone’s IPO, which created roughly $57.5 million in the capital. These resources will be utilized to increase Roxe’s financial reserves. It will also be CEO Haohan Xu’s second significant listing agreement of the year, having earlier approved a $530 million SPAC deal with Apifiny Group.
After a surge through 2020 and 2021, the popularity of SPACs- a typical listing vehicle for several major crypto companies – is diminishing this year. Following several scam allegations, the U.S. Securities and Exchange Commission (SEC) recently charted stricter reporting standards for SPACs.
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