Voyager Digital (TSX: VOYG) has begun the process of selling off its assets as it works through bankruptcy filings. The firm last night indicated that it will be selling its interest in Coinify ApS, a Europe-based crypto platform.
The transaction will see the indirectly wholly owned company sold to an entity owned by certain members of Coinify management, referred to as Ascension ApS. Proceeds will amount to just US$2.0 million, which is to be paid in cash.
Comparatively, Coinify was acquired just last August – a little over a year ago – for a figure of US$15 million in cash, plus 5.1 million common shares of Voyager, which at the time of announcement were worth approximately C$86.2 million. The transaction collectively was pegged at US$80.5 million on the firms financial statements, which includes a discount for a “lack of marketability” due to lockup provisions on the shares.
The asset for the nine months ended March 31, 2022 had generated the company revenue of $55.7 million, of which $20.6 million was in the third quarter alone.
The platform currently operates primarily in Europe and Asia, where it offers crypto trading, payment processing services, and enterprise solutions via its API, with the platform being separate from that of Voyagers.
The sale will see Voyager’s monthly spend cut by approximately US$500,000 based on company figures, while reducing headcount by 15%.
The sale has been approved by the US Bankruptcy Court for the Southern District of New York.
Voyager Digital is currently not trading as a result of the bankruptcy filings, although the firm has moved to delist from the TSX and instead list on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
