Blank check company Goldenstone Acquisition Ltd said on Tuesday evening that it had reached an agreement with blockchain-based payments company Roxe Holding Inc to go public for a combined enterprise value of around 3.6 billion. of dollars.
The deal comes against an unfavorable market environment with cryptocurrencies plunging in value and investors largely losing interest in special purpose acquisition companies (SPACs) of this type, in part to due to disappointing returns.
Reuters previously reported on the deal, citing people familiar with the matter. None of Roxe’s investors plan to sell their shares, the sources say.
Roxe shareholders will inject 100% of their equity into the combined company and certain shareholders are entitled to a premium for additional shares in the combined entity if certain share price targets are met, Goldenstone said in a statement. .
Goldenstone raised just $57.5 million in its IPO in March this year, a tiny fraction of the deal’s value.
Founded in 2019, Roxe connects banks, payment companies, and money transfer companies, facilitating cross-border payments using their private blockchain tokens. It does not use cryptocurrencies, the market value of which has been volatile.
Bitcoin fell below $20,000 on June 18 for the first time since December 2020. It has fallen around 60% this year. The overall crypto market crashed to around $900 billion from a record high of $3 trillion in November.
This would be Roxe founder Haohan Xu’s second SPAC merger this year after agreeing to take crypto exchange Apifiny public earlier this year in a $530 million deal.
According to Dealogic data, about 600 SPACs that have been made public over the past two years are still trying to close deals. Just over six months into 2022, 26 SPAC mergers have been terminated in the United States, according to data from industry tracker Spac Research. That compares to a total of 18 for all of 2021 and 7 in 2020.
Upon closing of the transaction, Goldenstone will be renamed Roxe Holding Group Inc and listed on Nasdaq.