Former Goldman Sachs Group Inc. banker Mike Novogratz plans to start a merchant bank dedicated to cryptocurrencies and blockchain.
He plans to acquire Vancouver-based First Coin Capital Corp and rename the new combined entity to Galaxy Digital LP bank and list it through a reverse takeover of inactive Bradmer Pharmaceuticals Inc which is listed on NEX. The company will then list on the Venture exchange.
The news was announced through a press release yesterday. The firm will focus on trading, principal investments, asset management and advisory related to cryptocurrencies.
“Going forward, the firm intends to capitalize on market opportunities made possible by the ongoing evolution of the digital assets space, through four primary business lines: trading, principal investing, asset management, and advisory. Galaxy Digital will leverage its deep ties into bitcoin, ethereum and other protocol communities to drive returns from four core business segments.” read the press release.
NEX lists companies that fall under Toronto Stock Exchange (TSX) Venture Exchange’s listing standards.
Reverse takeovers (RTO) route is faster and cheaper than Initial Public Offering and has been used 265 times on the TSX Venture exchange since 2001. It is a common route for many companies in Canada, especially for cryptocurrency companies. For instance, Hive Blockchain Technologies Ltd. used a reverse takeover of Leeta Gold Corp. Hut 8 Mining Corp will also use the same route to list this month.
Other products of reverse takeovers include Crypto Co. and Long Blockchain Corp.
In comparison, Nasdaq had only 49 RTOS. Smaller ineligible U.S.-based companies find it had to list through RTO since changing of rules by the U.S. Securities and Exchange Commission. In U.K., it is almost impossible for similar entities companies to list the following changing of rules by the U.K.’s Financial Services Authority in 2012.