Perhaps
Regular
This would mean a delisting on the ASX. Our shares would be converted into shares of a new SPAC company listed on Nasdaq only.Whilst can definitely be beneficial for a start up I tend to disagree thats all primarily for.
Not sure why dual listing seems to be necessary either?
Can be for any target company that the SPAC is looking for that meets far less criteria than a direct Nasdaq listing
SMX on the ASX I mentioned awhile ago as an example when Nasdaq came up before is now going through it as per below articles.
Security Matters snapped up at 15x premium: Merger and NASDAQ listing in sight
A Nasdaq listing is expected to re-rate the 'undervalued' small cap anti-counterfeit technology company, Security Matters (ASX: SMX).www.marketindex.com.au
KEY POINTS
Security Matters' technology can track and trace any object whether solid, liquid of gas
The company is poised to delist from the ASX and merge with a SPAC on the Nasdaq
The merger values Security Matters at a 15x premium compared to Monday's close
Blockchain and anti-counterfeit technology company Security Matters (ASX: SMX) more than doubled its valuation on Tuesday after plans to merge with a Nasdaq listed SPAC (special purpose acquisition company).
The deal with Nasdaq-listed Lionheart III values the combined entity at US$360, which reflects a pre-money valuation of Security Matters of US$200m.
The merger is poised to increase the company’s value by more than 15 times based on Monday’s close. Even after a 170% rally on Tuesday, there’s still more than 5 times the upside.
Security Matters CEO Haggai Alon told The Australian Financial Review that the business has been undervalued by local investors and a Nasdaq listing would attract a more favourable valuation and better liquidity.
"We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that,” said Alon.
You can read more about Security Matter's revolutionary supply chain technology here.
To Alon’s point, Security Matters shares spent almost 4 years trading sideways around the 30 cent levels, occasionally rallying to highs of 50 cents and dips below 20 cents.
The stock struggled for liquidity and investor interest, with the last 20 days volume (excluding today) averaging approximately 56,500 shares or $5,600
Redemptions highly likely
There will be a merger, within the merger, as Security Matter's and its publicly listed Irish company, Empatan PLC, will come together as SMX Public Company Limited.
Local shareholders will be entitled to one share in the new company for every 10.2 shares they own.
If investors don't like the deal, they can pull out, redeeming their shares for cash.
Assuming there are no redemptions, SMX shareholders will own approximately 55.5% of the combined company.
SPACs were an immensely popular way to list, often providing companies with higher valuations, less dilution, greater speed to capital and lower fees.
Though, volatile market conditions and higher interest rates have seen just US$12bn new US SPAC issuances so far this year, compared to US$163 in 2021.
If a large percentage of shareholders choose to exercise their redemption rights, then this could drastically reduce the cash proceeds of the combined company.
For now, Security Matters expects the combined Group to have a post-transaction cash balance of US$116m.
Very interesting here in your example: At the closing, SMX shareholders will own approximately 55.5% of the combined company.
First step, half of my investment burnt, love it.
SMX has a chart goin' straight down over years, this looks more like an act of despair to generate fresh money.
NO, NEVER. This might work as a trick for a very small blockchain company to survive, but this is not the way of a serious company listed on ASX200.
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