First crypto exchange to go public will trade on Toronto stock exchange

02.15.19

Taking a page out of the playbook of U.S. cannabis companies raising capital on Canadian stock exchanges, Voyager Digital Holdings, Inc., a New Jersey-based cryptocurrency exchange operator recently announced the closing of its acquisition of all of the outstanding shares of UC Resources Ltd., which continues to be listed on the Canadian TSX Venture Exchange.

The consideration paid for the reverse takeover acquisition was cash consideration of $100, the issuance of 17,984,748 common shares of the newly acquired entity and 4,133,000 options to acquire common shares in the newly acquired entity, exercisable at $0.30 per share. The newly acquired entity also changed its name to Voyager Digital (Canada) Ltd. and its ticker symbol to VYGR with trading in the company’s shares resuming on May 11, 2019.

Putting aside the irony that a cryptocurrency exchange is about to be listed on a traditional stock exchange, it is likely that Voyager Digital made the move to Canada’s TSX Venture exchange in order to beat other U.S.-based cryptocurrency rivals such as Robin Hood, which has been widely reported as preparing for an initial public offering on U.S.-based exchanges.

It should also be mentioned that, unlike Robin Hood’s platform, Voyager Digital’s offerings are still in beta tests and not available for general public use, such that the company is pre-revenue. Further, it’s likely that, like many pre-revenue cannabis companies on the TSX, Voyager will eventually seek to cross-list on a national exchange in the U.S., such as Nasdaq. It will be interesting to see if Voyager Digital’s move will create another parallel to cannabis companies and spark a rush of U.S.-based cryptocurrency companies seeking to go public on Canadian stock exchanges.