Shares of Verb Technology Company (NASDAQ:VERB) soared 90% after the company unveiled a major private placement to fund a strategic transformation. The Las Vegas-based firm is raising approximately $558 million through a PIPE transaction aimed at creating the first publicly traded company focused on TON Treasury Strategy, in collaboration with Kingsway Capital.
The transaction includes the sale of about 58.7 million shares of common stock at $9.51 per share, backed by over 110 institutional and crypto-native investors. The funding round was both upsized and oversubscribed, reflecting strong demand. Most of the proceeds will be used to purchase Toncoin ($TON), the native token of The Open Network (TON) blockchain.
Following the closing, expected around August 7, Verb Technology plans to rebrand as TON Strategy Co. (TSC) and become one of the largest holders of Toncoin worldwide. The company aims to implement a staking-based investment strategy designed to produce sustainable returns from its crypto holdings.
The deal was led by Kingsway Capital, with additional support from high-profile investors including Vy Capital, Blockchain.com, Ribbit Capital, and Graticule (GAMA). A range of notable crypto-native backers also joined the round, such as CMCC Global, Pantera, and Kraken.
“Telegram is the preferred messenger for the growing global crypto community and $TON is the currency that powers the Telegram ecosystem. In my judgment, permanent capital vehicles are particularly suitable for long-term holdings of $TON, which not only has the potential to compound in value, but also offers staking yield, meaning TSC can benefit from staking rewards,” said Manuel Stotz, who will serve as Executive Chairman of the new company.
Once the transaction is finalized, Veronika Kapustina will take on the role of CEO, Sarah Olsen will become CFO, and Peter Smith, co-founder of Blockchain.com, will act as Special Advisor.
Verb Technology also emphasized that its existing business operations will continue and are set to expand, with shares remaining publicly traded on the Nasdaq under the “VERB” ticker.
Verb Technology Company stock price
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