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Investing.com -- Above Food Ingredients Inc (NASDAQ:ABVE) stock surged 65% following the announcement of a reverse takeover merger with Palm Global Technologies Ltd that will add billions in gold-based assets to the company’s balance sheet.
The merger, unanimously approved by both companies’ boards, will transform Above Food by adding Palm Global’s 30% stake in the Palm Promax Investments (PPI) joint venture, which includes a share of PPI’s $350 billion valuation of U.S. situated gold-based assets.
Under the agreement, Above Food will acquire Palm Global, with the latter’s shareholders receiving 1.1 billion shares in Above Food. The deal positions Above Food to become a market leader in real-world asset tokenization and stablecoin issuance, with access to over $1.5 trillion of diverse AA- and AAA-rated sovereign-owned assets through its joint venture partner, Promax United.
The merger comes amid increased global focus on stablecoin standards, highlighted by the recent passage of the GENIUS Act in the U.S. Senate and similar legislation in other regions. PPI is positioned to become a global leader in stablecoin issuance and central bank digital currency frameworks, with over 15 sovereign partners already committed.
Following the merger, His Highness Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum of the Dubai Royal Family will join Above Food’s board of directors, along with Muayad Kafesha, Founder and President of Palm Global, and Peter Knez, Chairman and CEO of Palm Global.
Lionel Kambeitz, Executive Chairman of Above Food, called the merger "a seismic shift" that will significantly strengthen the company’s balance sheet with the expected addition of over $100 billion in gold-backed assets.
The combined company’s shares are expected to continue trading on the Nasdaq Capital Market, subject to necessary approvals.
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