CoinDesk
Animoca Brands suspended merger talks with Currenc Group over a reverse transaction that would have taken the Hong Kong-based digital asset investment company to a Nasdaq listing. The companies said their timelines for completing the deal no longer aligned. The proposed structure would have given Animoca a 95% stake in the combined company.
Why it matters
The suspension delays Animoca's effort to access public markets, but does not end that objective. The company said it remains committed to pursuing a listing on a major public exchange, while co-founder Yat Siu said Animoca would continue to pursue the optimal route to becoming public.
Animoca's portfolio spans decentralized finance, artificial intelligence, non-fungible tokens and gaming. Its advisory services have also become a larger part of its revenue mix, giving the listing effort exposure to several areas of the digital asset economy rather than a single product line.
Market impact
The reverse merger had offered a route to Nasdaq without a conventional initial public offering. With that path suspended, Animoca must now evaluate another listing structure or exchange route, while Currenc loses the immediate transaction catalyst.
Currenc shares closed at $3.23 on Monday after gaining 1.25% during regular trading, then fell 0.93% in after-hours trading. The move points to a limited but negative initial market response to the breakdown in talks. The next signal will be Animoca's choice of public-market route and whether the companies reopen discussions on a different timetable.
Frequently asked questions
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Why did Animoca Brands suspend its merger talks with Currenc?
Animoca Brands and Currenc Group said their timelines for completing the proposed reverse merger no longer aligned with their respective goals.
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What stake would Animoca have held in the combined company?
The proposed transaction would have given Animoca Brands a 95% stake in the combined company.
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Would the reverse merger have given Animoca a Nasdaq listing?
Yes. The proposed reverse merger was intended to provide Animoca Brands with a Nasdaq listing.
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Has Animoca Brands abandoned plans to become a public company?
No. Animoca said it remains committed to pursuing a listing on a major public exchange and will continue evaluating routes to the public markets.
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How did Currenc shares react after the talks were suspended?
Currenc shares closed at $3.23 after gaining 1.25% during regular trading, then fell 0.93% in after-hours trading.
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