Mingxing “Star” Xu, the founder of cryptocurrency trade OKCoin, has come to be the premier individual shareholder of a general public business detailed in Hong Kong by using a $60 million acquisition.
LEAP Holdings Team, the construction engineering firm acquired, declared the competed deal on Wednesday. OKC Holdings Corp, the mother or father business of OKCoin, purchased about 3.2 billion shares of the business for HK$.15 (all over $.02) for every share to realize the takeover, it mentioned.
OKC Holdings is now the premier shareholder of LEAP Holdings, proudly owning 60.49 percent of its stock and acquiring the exact same proportion of voting legal rights. As a end result, the trade is a stage closer to a achievable again-door listing on the Hong Kong Stock Exchange (HKEX).
Xu retains the majority stake in OKC Holdings with 52.32 percent possession as a result of two companies StarXu Capital and OKEM Providers Organization.
Other noteworthy shareholders of OKC Holdings consist of Gang Mai, who retains 5.08 percent stake by using Vlab Capital, and Bo Feng of Ceyun Ventures holding 9.86 percent as a result of Golden Status Ventures. Mai also has a further joint fund named Venturelab jointly made with the U.S.-based mostly venture capitalist Tim Draper. Jing Shi, daughter of Chinese billionaire entrepreneur Yuzhu Shi, also invested in OKC Holdings and owns 13 percent.
OKC Holdings to begin with submitted for the application with the HKEX on Jan. 10 to invest in the managing stake in LEAP Holdings Team, with the deal closing in just two months.
Crypto exchanges are increasingly wanting to decide for a reverse-merger route to come to be publicly detailed businesses, rather than likely for the traditional IPO route which is a lengthy and complicated process.
Just yesterday, the holding business of South Korea’s Bithumb exchange signed a binding letter of intent arrangement with U.S.-detailed expenditure agency Blockchain Industries for a reverse merger.
And, final August, Singapore-based mostly crypto trade Huobi took a related stage, getting 66.26 percent of a HKEX-detailed agency named Pantronics Holdings for all over $70 million.
Billionaire investor Michael Novogratz also selected the reverse takeover route in July 2018, merging his crypto service provider bank, Galaxy Electronic, with Toronto-detailed shell business Bradmer Prescription drugs to come to be publicly detailed in Canada.
Hong Kong picture by using Shutterstock