Blockchain Payments Company Roxe on Brink of Going Public in $3.6 Billion SPAC Deal

22 June 2022, 17:00 GMT+0000
Updated by Wahid Pessarlay
22 June 2022, 17:00 GMT+0000
In Brief
  • Roxe Holding has entered into an agreement with a blank check company to take it public.
  • The deal is reportedly in the region of $3.6 billion and has been approved by all relevant stakeholders.
  • Since the start of the year, interest in mergers with blank check companies has been at an all-time low because of disappointing returns.
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Roxe Holdings, a blockchain payments firm is about to become a public company but will not go through the route of getting an initial public offering (IPO). Instead, it will be getting help from a Special Purpose Acquisition Company (SPAC) to complete the process.

On Tuesday, executives of blockchain payments firm Roxe announced that it had struck a deal with Goldenstone Acquisition Ltd to take the company public. The deal is suggested to be around $3.6 billion and will have Roxe listed on the Nasdaq Stock Market upon completion.

The deal was inked after a consensus was reached by both Roxe’s and Goldenstone’s shareholders. Under the new structure, Goldenstone Acquisition will be renamed Roxe Holding Group Inc with Roxe’s shareholders carrying all their holdings into the merger. According to the finer details of the deal, some stockholders are entitled to more shares in the event stock price milestones are met.

Goldenstone’s CEO Eddie Ni suggested that the deal would be completed in the first quarter of 2023 while he extolled the offerings of Roxe. He expressed belief in the “opportunity for blockchain to transform payments” and in “Roxe’s adherence to a compliant, robust strategy”

Not the first rodeo

Roxe’s founder Haohan Xu is no stranger to the intricacies of a SPAC merger. ‘Early in the year, he entered an agreement to take cryptocurrency exchange Apifiny public in a deal worth $530 million,

Roxe was founded in 2019 to serve as a blockchain infrastructure company with a hybrid outlook. Instead of merely focusing on only cryptocurrencies, it supports a wide range of assets including, central bank digital currencies (CBDC), stablecoins, gift cards, gaming tokens and even stocks. Because of its hybrid nature, Roxe issues its own private tokens for settling transactions and does not interact directly with cryptocurrencies. 

The deal with Goldenstone hangs in the balance

Analysts are not overly optimistic about the merger with Goldenstone because of the streaks of bottlenecks that have plagued deals of this nature. According to data from Dealogic, nearly 600 SPAC deals in the last two years have not been completed.

In 2022, the data is grim as 26 SPAC mergers in the U.S. have ended abruptly, which is in stark contrast with the figures from  2021 and 2022. With only six months gone in the year, this figure could go even higher as investors continue to tread tentatively in the face of current macroeconomic challenges.

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