In Brief
Animoca Brands plans a Nasdaq listing via a reverse merger with Currenc Group Inc., aiming for a $2.4 billion valuation.
Post-merger, Animoca shareholders will own 95% of the newly formed entity, with Currenc shareholders getting 5%.
The newly public company will focus on diverse digital assets such as DeFi, NFTs, and AI.
Merger Strategy for Nasdaq Listing
Animoca Brands is set to team up with fintech firm Currenc Group Inc. in a reverse merger, bypassing the traditional initial public offering route. This approach is tailored to capitalize on Currenc’s foothold in the financial technology market, paving the way for Animoca’s entry into the lucrative American capital markets.
Financial Dynamics and Company Valuation
The merger values the combined entity at approximately $2.4 billion, based on the market capitalization of Currenc just before the announcement. Under the proposed merger terms, current Currenc shareholders will own about 5% of the new conglomerate, while the rest, a substantial 95%, will be held by Animoca’s shareholders. This restructuring will also prompt Currenc to spin off several of its key segments, including its AI-enhanced solutions and digital remittance services, into a separate independent entity.
Future Projections and Impact
Having closed the year 2024 with a strong financial standing, boasting $4.3 billion in assets, Animoca Brands looks forward to the merger as a gateway to establishing a pioneering investment vehicle on Nasdaq. This venture is anticipated to provide investors with direct exposure to a diverse array of sectors in the digital assets realm, including decentralized finance, non-fungible tokens, and artificial intelligence technologies.
Yat Siu, the executive chairman of Animoca Brands, expressed his outlook on the merger’s vast potential: “The proposed merger of Animoca Brands and Currenc will result in the world’s first publicly-listed, diversified digital assets conglomerate, giving investors on Nasdaq direct access to the growth potential of the trillion-dollar altcoin digital economy through a single, diversified vehicle spanning DeFi, AI, NFTs, gaming, and DeSci.”
He further emphasized the transformative nature of this major corporate integration, stating, “We believe that this proposed transaction would usher in a new asset class that should position investors at the forefront of one of the greatest opportunities of our generation.” This strategic merger not only underscores the evolving landscape of digital finance but also highlights a significant shift towards more innovative and inclusive investment frameworks on global platforms like Nasdaq.
