Verb Technology stock soars after $558 million placement for TON strategy

Published 04/08/2025, 13:30
© Reuters.

Investing.com -- Verb Technology Company (NASDAQ:VERB) stock soared 90% after announcing a private placement of approximately $558 million to establish the first publicly listed TON Treasury Strategy Company, in partnership with Kingsway Capital.

The Las Vegas-based company has entered into an upsized and oversubscribed PIPE transaction with over 110 institutional and crypto-native investors for the purchase and sale of approximately 58.7 million shares of common stock at $9.51 per share. The company intends to use the majority of the net proceeds to acquire Toncoin ($TON), the native cryptocurrency of The Open Network blockchain.

Following the transaction, which is expected to close around August 7, the company plans to rebrand as TON Strategy Co. and position itself as one of the largest holders of $TON globally. The company will implement a strategy to generate sustainable staking rewards to manage and grow its $TON exposure.

The private placement was led by Kingsway Capital and anchored by Vy Capital, Blockchain.com, Ribbit Capital, and Graticule (GAMA), with participation from numerous other crypto-native investors including CMCC Global, Pantera, and Kraken.

"Telegram is the preferred messenger for the growing global crypto community and $TON is the currency that powers the Telegram ecosystem. In my judgment, permanent capital vehicles are particularly suitable for long-term holdings of $TON, which not only has the potential to compound in value, but also offers staking yield, meaning TSC can benefit from staking rewards," said Manuel Stotz, incoming Executive Chairman.

Upon closing, the company will be led by an experienced team including Stotz as Executive Chairman, Veronika Kapustina as CEO, and Sarah Olsen as CFO, with Peter Smith of Blockchain.com serving as Special Advisor.

The company’s existing business operations will continue and are expected to expand while its common stock will continue trading on the Nasdaq under the ticker "VERB."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.