Crypto blank-check deal has at least one virtue

Eqonex

10/07/2019 15:53

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Tom Buerkle
    NEW YORK, July 10 (Reuters Breakingviews) - The idea of a
blockchain company backing into a listed special-purpose buyout
vehicle sounds like risk on steroids. Hong Kong-based Diginex
has big ambitions but a skimpy track record. Yet the
transparency of a Nasdaq listing can help sort cryptocurrency
reality from hype.
    Full view will be published shortly.
    On Twitter https://twitter.com/tombuerkle
         
    CONTEXT NEWS 
    - 8i Enterprises Acquisition, a special purpose acquisition
company or SPAC, said on July 10 that it had agreed to acquire
blockchain financial services company Diginex in a transaction
that will give the outfit an enterprise value of $276 million.
    - Nasdaq-listed 8i will change its name to Diginex,
effectively giving the Hong Kong-based blockchain group a public
listing without undergoing a traditional initial public
offering.
    - The SPAC will offer 20 million of its ordinary shares,
valued at $10 each, to Diginex’s shareholders, with an
additional 5 million ordinary shares if the new Diginex hits
various share-price thresholds over the next three years.
    - Hong Kong-based Diginex provides technology for trading
cryptocurrencies and advisory services on distributed ledger
technology and the distribution of digital assets.
    - For previous columns by the author, Reuters customers can
click on  BUERKLE/ 
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Company press release    https://www.prnewswire.com/news-releases/8i-enterprises-acquisition-corp-announces-execution-of-share-exchange-agreement-with-diginex-limited-300882390.html
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 (Editing by John Foley and Amanda Gomez)
 ((thomas.buerkle@thomsonreuters.com; Reuters Messaging:
thomas.buerkle.thomsonreuters.com@reuters.net))