Verb Technology Shares Double After Private Placement, Intent to Buy Cryptocurrency
By Chris WackVerb Technology shares doubled, to $19.05, after the company priced an oversubscribed private placement, positioning it to implement a TON treasury strategy.The company expects to rebrand as TON Strategy Co., becoming the first publicly traded treasury reserve of Toncoin, or $TON, the native cryptocurrency of The Open Network blockchain, in partnership with Kingsway Capital.The company has entered into a private investment in public equity transaction with institutional and accredited investors for the purchase and sale of 58.7 million shares--including pre-funded warrants--at $9.51 a share, for expected proceeds of $558 million.Verb said it intends to use the majority of the proceeds to acquire $TON, which will serve as its primary treasury reserve asset. The company expects to continue and expand its existing business operations.The company said that more than 110 institutional and crypto-native investors subscribed to the deal.The company's common stock will continue to trade on the Nasdaq under the ticker VERB, with the updated treasury strategy effective immediately following closing, which is expected to take place on or around Thursday.Write to Chris Wack at [email protected]