Goldenstone Acquisition Ltd, a special purpose acquisition (SPAC) company, has announced plans to go public with blockchain-based payments company Roxe Holding Inc.
According to Wednesday’s announcement, SPAC has agreed to a $3.6 billion merger with global blockchain payments firm, which will see Roxe debut on the Nasdaq under the ticker ROXE. Roxe is a global company that offers business-to-consumer payment services, with a focus on Blockchain technology.
According to a Reuters note, citing insider sources, no current Roxe shareholder plans to sell their stake after the merger. On Tuesday, Roxe said some shareholders would be eligible for profits if the listed share price is reached.
Blockchain Payments Firm Roxe to Go Public in $3.6B Merger. #SPAC deal will see #Roxe merge with Goldenstone eleven deal wraps up in Q1, 2023.
Roxe issues its own private tokens to facilitate money transfers and remittances across 113 countries pic.twitter.com/SfM3F2kJu6
— Crypto HINDUSTAN (@cryptohindustan) June 22, 2022
The deal comes in an unfavorable market environment, in which the value of cryptocurrencies has plummeted and investors have largely abandoned such special acquisition companies due to poor performance. The total cryptocurrency market capitalization fell below $1 trillion, while Bitcoin (BTC) has sunk to its lowest level since mid-2021.
The long decline in cryptocurrency prices has been fueled by concerns about the pullout of numerous major players. Sentiment has deteriorated as a result of rising inflation, interest rates and weakening macroeconomic signals.
Additionally, the deal comes months after Goldenstone’s initial public offering (IPO), which raised some $57.5 million of capital. These resources will be used to increase Roxe’s financial reserves. It will also be the second major listing deal of the year for CEO Haohan Xu, who had already closed a $530 million SPAC deal with Apifiny Group.
After a surge throughout 2020 and 2021, the popularity of SPACs – a typical IPO option for several large cryptocurrency companies – is declining this year. Following several allegations of fraud, the US Securities and Exchange Commission (SEC) recently outlined stricter reporting standards for SPACs.
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