Verb Technology to Create $558M TON Treasury

Verb Technology Company (ticker VERB), a Nasdaq-listed firm specializing in social commerce via live video and social media, is preparing to raise $558 million in a private placement. This move will make it the first publicly traded entity to hold Toncoin (TON) as its main treasury asset. Following the deal's expected close around August 7, the company plans to rebrand itself as TON Strategy Co. The majority of the funds raised will be allocated to acquiring TON, enabling it to generate staking rewards, positioning itself among the largest global holders of the token. The deal, structured as a PIPE (private investment in public equity), involves selling approximately 58.7 million shares at $9.51 each, the market closing price on August 1. The investor group includes over 110 participants led by Kingsway Capital, with significant backing from Blockchain.com, Vy Capital, Ribbit Capital, and Graticule. Other notable investors include Pantera, ParaFi, Animoca, Arrington Capital, Kraken, BitGo, FalconX, The Open Platform (TOP), Hivemind Capital, and CMCC Global. The company states that 77% of the total funds will be held in cash reserves, with its planned TON holdings expected to represent about 5% of the circulating supply's market value. Approximately 36% of the company's share capital will be under a lockup period of 6 to 12 months. TON is the native token of The Open Network blockchain, which supports Telegram’s web3 infrastructure. Earlier in the year, Telegram selected TON as its exclusive blockchain for mini apps, tokenized digital assets, and payments for Telegram Ads in many regions, boasting over 1 billion monthly active users. Incoming Executive Chairman Manuel Stotz, also CEO of Kingsway Capital and President of the TON Foundation, highlighted Telegram as the preferred messenger for crypto enthusiasts, noting the appreciation potential and staking yield of $TON. Peter Smith, CEO of Blockchain.com, will serve as a special advisor to the company. The executive team will feature Veronika Kapustina as CEO, a former advisor to the TON Foundation and ex-Morgan Stanley banker, and Sarah Olsen, formerly of JP Morgan’s Onyx division, as CFO. The company's common stock will continue to trade on Nasdaq under the ticker VERB. Headquartered in Las Vegas, Nevada, Verb operates production and creator studios near Los Angeles, California. Kingsway Capital was advised by Cohen & Company Capital Markets, which was the sole placement agent for the transaction. Legal assistance was provided by Reed Smith for Kingsway Capital, Perkins Coie for Verb, Brownstein Hyatt Farber Schreck for Nevada matters, and Morgan Lewis for Cohen & Company. As of now, Toncoin (TON) has decreased by 7.5% in the past 24 hours, trading at around $3.40. It ranks as the 26th largest cryptocurrency by market capitalization, currently at roughly $8.2 billion, and has a fully diluted valuation of about $17.5 billion. Disclaimer: The Block is an independent media outlet providing news and analysis. As of November 2023, Foresight Ventures is a majority investor in The Block, which operates independently to deliver objective and timely information about the crypto industry.