Blockchain Industries, Inc. has signed a binding letter of intent to merge with Singapore-based BTHMB Holdings Pte. Ltd., which will be rebranded as Blockchain Exchange Alliance (BXA). In a press release, the company announced that the two firms will merge into one entity and become “a publicly traded cryptocurrency exchange company.”
Blockchain Industries CEO Patrick Moynihan said:
“We are thrilled to be part of this important initiative that is expected to bring liquidity, accessibility and expansion to the blockchain industry. By merging with BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.”
According to the company’s press release, the merger is designed to provide a “unified, more secure global exchange platform with a broad capability to support emerging blockchain e-commerce, payments, and other digital finance functions.” BXA CEO Dr. Byung Gun Kim also noted that the merger will provide new growth opportunities within the United States – which he referred to as “a key factor to any global initiative.”
The LOI establishes a mutual goal of merging by March 1, 2019. BAX has reportedly agreed to escrow $1 million as a condition of the LOI.
In its report on Tuesday, CNBC cited one source who reported that BXA had initially considered a public listing in Singapore but decided against that option since an IPO could take as long as two years. Instead, the company decided to pursue this option, which some are calling a reverse merger. Meanwhile, the company has plans to upgrade its listing at some point in the future:
The combined company plans to eventually "up-list," meaning it would move from over-the-counter markets, which are known for trading penny stocks, to the New York Stock Exchange or Nasdaq, sources told CNBC. That would also require the company to meet stiffer listing requirements.
BXA maintains a controlling interest in the South Korean cryptocurrency exchange Bithumb, which is the second-largest crypto exchange in the world, by volume.