TSX runs higher on rate cut expectations
Connexa Sports Technologies Inc. (NASDAQ:YYAI), a technology company with impressive revenue growth of 146.7% in the last twelve months, and JuCoin Capital Pte Ltd have entered into a definitive agreement to form a joint venture company aimed at launching a new cryptocurrency exchange named aiRWA. The agreement was signed Monday, according to a statement filed with the Securities and Exchange Commission. According to InvestingPro data, Connexa’s stock has shown remarkable momentum with a 478.79% return over the past six months.
Under the terms of the agreement, both Connexa and JuCoin will contribute $250 million each in cash or cryptocurrency, including stablecoin, Ethereum, or Bitcoin, to the new joint venture. Upon closing, Connexa, currently valued at $61.6 million in market capitalization, will hold 51% of the JV Company, while JuCoin will retain 49%. The joint venture is expected to be established within 120 days of the agreement. With a healthy current ratio of 3.45, Connexa demonstrates strong financial positioning for this venture.
The aiRWA exchange will focus on real-world asset cryptocurrencies and integrate artificial intelligence into its operations. The JV Company may also set up subsidiaries to provide services such as digital asset custody, settlement, fiat on/off ramps, payments, asset management, and institutional-grade over-the-counter trading.
The board of directors for the JV Company will consist of five members, with Connexa appointing three and JuCoin appointing two. Significant decisions, including mergers, acquisitions, liquidations, amendments to organizational documents, and major asset sales, will require approval from both parties as long as each maintains at least a 20% stake.
The agreement includes a lock-up period restricting share transfers for two years from the JV Company’s founding, except with mutual consent or within a shareholder’s corporate group. Both parties will have preemptive rights to purchase new securities issued by the JV Company.
The JV Company will seek to obtain and maintain regulatory licenses, including virtual asset service provider and money services business licenses, in key jurisdictions. The agreement may be terminated if the closing does not occur within six months, by mutual agreement, or if the transaction becomes prohibited by law.
This information is based on a press release statement filed with the SEC. For deeper insights into Connexa’s financial health and growth potential, including additional ProTips and detailed valuation metrics, visit InvestingPro.
In other recent news, Connexa Sports Technologies Inc. announced a $500 million joint venture with cryptocurrency exchange JuCoin to create aiRWA, a new platform for real-world asset tokenization. Each company will contribute $250 million to develop the necessary infrastructure, including exchange operations and digital asset custody. Additionally, Connexa Sports Technologies disclosed a $4.6 million private placement on Nasdaq. This involves a securities purchase agreement for 20 million units, each comprising one share of common stock and two warrants, offered at $0.23 per unit. The warrants have a five-year exercise period and an exercise price of $0.89 per share. The exercise price is subject to adjustments in certain company actions, such as stock splits or dividends. These developments are part of Connexa Sports Technologies’ recent strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.