More and more crypto companies are taking the route of a reverse IPO, but will it pay off?
In a transaction that has all the hallmarks of a reverse initial public offering (IPO) — also called a reverse merger — OKC Holdings Corp., which is the parent company of OKCoin and OKEx (the world’s second-largest cryptocurrency exchange by trading volume) bought a controlling share in Leap Holdings Group on Jan. 14.
Leap Holdings is a construction company listed on the Hong Kong Stock Exchange (HKEX), with a market cap of 978 million Hong Kong dollars ($124.7 million). OKC Holdings bought 3,182,790,001 shares at a price of HK$0.1520 ($0.019) each, for 60.49 percent of the company and voting rights.
The transaction is only one in a string of cryptocurrency exchanges and other crypto-related companies that have followed this backdoor strategy to getting listed on a traditional stock exchanges.
On Aug. 21, 2018,…
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