Cryptocurrency brokerage startup, Voyager, is reported to be going public on the Canadian TSX Venture Exchange. Voyager, founded by Uber and E*Trade Alums, will go through a reverse merger valuing $60 million for the stated move.
The reverse merger often takes place when a privately held firm buys most of the shares in a publicly traded and two companies are collaborated to form one firm. In the case of Voyager, the US-based company has bought the shell of a mineral exploration company UC Resources Ltd, which stopped operations in 2015. The acquisition was completed on the onset on the week ending 9th February 2018.
According to a statement released on 7th February 2019 following the reverse merger, the merged company is named Voyager Digital (Canada) Ltd. The shares of the company are slated to start trading on 11th February on TSX, which is a unit of TMX Group, the parent of the Toronto Stock Exchange.
The co-founder and CEO of Voyager, Stephen Ehrlich, in an interview with CoinDesk, said that the capabilities of the company to issue publicly traders stocks will fund the company to make further acquisitions and nurture the business.
Ehrlich further added that the company as of now is on the look for parts of the crypto infrastructure that matches with the company’s requirement as well as mission. Ehrlich has witnessed as many as eight acquisitions during his stay as the CEO of Lightspeed Financial, the online stock brokerage and also operated the trading business of E*Trade. He further said that the opportunity will add to the cash flow of the company and will provide it with greater opportunities to serve better.
Last summer, Voyager revealed its plans to allow zero-commission crypto trading for retail investors in the US. Recently, the company was in news for raising nearly $7 million from unnamed investors in a series of private rounds held in May, according to the Chief Marketing Officer Steve Capone. The last funding round valued the company at $60 million, as reported by Ehrlich. The company founders also include Oscar Salazar, CTO of Uber and the founding architect.
Besides dry powder for M&A, the listed company will enable Voyager in improving its relationship with the clients as the company would be required to make quarterly as well as annual disclosures as it is financially liable to the Canadian securities regulators. Being publicly listed brings with its lots of transparency and credibility, added Ehrlich.
It is not the first crypto company to go public through a reverse merger on the Canadian stock market. Most lately, Galaxy Digital Holdings was able to get its shares traded on the Canadian stock exchange through the acquisition of a listed pharmaceutical firm.
The development, in fact, is in line with Voyager plans to enable retail as well as institutional investors to purchase and sell crypto across various exchanges via a single account on their respective smartphone app.