Canadian crypto asset broker Voyager Digital Ltd has started trading its shares on the Toronto Ventures Exchange (TSX.V). The company listed through a reverse takeover of mineral exploration company UC Resources. Voyager argues that going public will help to improve transparency in the crypto market while promoting adoption by allowing traditional investors to tap into digital assets through the public equity market.
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‘Listing Will Boost Transparency and Crypto Adoption’
Shares of Voyager will trade under the ticker symbol ‘VYGR.V’. “While reverse takeovers are an increasingly popular business strategy for many emerging companies, the idea of a young company going public may at first glance seem out of the norm,” Stephen Ehrlich, chief executive officer of Voyager, explained in a blog post.
“For us, the choice made perfect sense. It offered Voyager the chance to bring transparency to our business, maturity to the crypto market and to provide the world with an opportunity to invest in a public crypto trading company through the traditional market.”
With a reverse takeover, private companies typically avoid the rigor of regulatory oversight and costs associated with going public through an initial public offering, which in a sense makes them attractive to startups keen on getting around bureaucratic red tape.
Voyager has recently announced the finalization of its tie-up with UC Resources, a publicly quoted company on the NEX Exchange, Canada’s junior market for emerging companies. By virtue of the merger, which in effect is a takeover of UC Resources’ majority shareholding, Voyager has gone public. The deal allows the merged entity to transition to the TSX Ventures Exchange as a Tier 2 company.
‘Solid Capital Base to Drive Company Growth’
In his blog post, Ehrlich elaborated that the stock market listing legally bounds the broker to disclose both quarterly and annual reports. Voyager will also be required to publicly reveal details about any corporate deals like mergers, acquisitions, insider trading, securities transactions by company employees and ownership changes.
“We’re confident that the level of transparency a public company is held to will benefit not only our shareholders and customers but also the crypto market as a whole,” said Ehrlich. “Our hope is that we can encourage more people to participate in the crypto market through a regulated vehicle without the fear and doubt that has shrouded the industry previously.”
The listing “was a crucial step for our growing company”, said the CEO, “as we now have a solid capital base with which to grow, expand and improve our offering for investors.” He also spoke about how the development will boost cryptocurrency adoption by allowing traditional equities traders to have the opportunity to invest in crypto by buying shares of Voyager, “even if they’ve never touched crypto assets before.”
Voyager offers cryptocurrency trading services to both retail and institutional investors. The brokerage, which is eyeing to grow its share of the U.S. market, is currently testing a zero-fee mobile digital currency trading app in beta. The app is built to allow users to buy and sell as well as manage their cryptocurrency investments across several exchanges.
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