HK blockchain firm Diginex aims to list on Nasdaq in Q4 via reverse merger

FILE PHOTO: A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City, U.S., October 24, 2016. REUTERS/Shannon Stapleton/File Photo

Hong Kong-based blockchain financial services and technology company Diginex Limited is targeting to list on the Nasdaq Stock Exchange in the fourth quarter of 2019, its CEO Richard Byworth told DealStreetAsia.

The company will be listed on Nasdaq following the completion of its share exchange agreement with US-based special purpose vehicle company 8i Enterprises Acquisition Corp (NASDAQ:JFK), according to its press release.

At the effective time of the share exchange, Diginex shares will be swapped for 20 million shares of JFK that is valued at $10 per share to be locked up for six months.

JFK is being advised by the financial advisory firm Chardan and legal firm Loeb and Loeb LLP, while Diginex’s legal firm is Winston & Strawn LLP.

After the completion of the deal, JFK shareholders will hold 20 per cent in Diginex that is estimated to have an initial enterprise value (EV) of around $276 million.

The transaction is currently awaiting the approval of JFK’s existing shareholders.

Diginex senior leadership team comprises strategic corporate partners, family offices and high net-worth individuals from the financial industry.

Diginex is looking to expand its operations in the financial markets space and introduce a blockchain-based securities product in the US market shortly.

In the Southeast Asian region, too, the company is looking to ramp up its presence. Besides working with the British Embassy, Diginex is working with a slew of non-government organisations in Thailand to launch a blockchain-based system to curb worker exploitation through its ‘eMin’ product. The company targets to reach 5,000 agriculture and aquaculture workers in Thailand and Vietnam through the product.

In the next few months, Diginex also expects to launch similar projects in apparel and toy manufacturing industries in Southeast Asia and India.

Currently, Diginex provides an ecosystem to enable broader adoption of digital assets across financial markets.