WonderFi Technologies (NEO: WNDR) is acquiring another crypto platform. The firm this morning announced an all-stock transaction to acquire Coinberry, a crypto asset trading platform based in Canada.
The platform reportedly has seen transactions to date of over $1.0 billion since being established in 2017. The firm saw revenue of $13.0 million in 2021, with the platform reportedly having 220,000 users, although WonderFi doesn’t quantify whether these users are active. Assets under custody for the firm reportedly sit in excess of $100 million.
The platform is being purchased for $38.3 million in an all-stock deal, with 29.1 million shares to be issued to the selling shareholders of the company. Principals of the company will reportedly be subjected to a 24 months escrow schedule, while certain shareholders of the company will have a 12 month lock-up schedule.
Despite the significant price tag, the company appears to be focused on framing the entity as a cog in its crypto portfolio. On a combined basis, the firms crypto assets will have a reported 750,000 users post-closing, with the transaction said to have “numerous operational synergy and cost efficiency opportunities,” with the firms BitBuy and WonderFi assets. Potential savings in dollar terms was not provided.
The transaction is expected to close in the second quarter of 2022.
WonderFi last traded at $1.26 on the Neo.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.