Crypto firm Circle is set to become a publicly listed company through a $4.5 billion business combination deal with Concord Acquisition Corp. (CND), a publicly traded special purpose acquisition company or SPAC. Circle is expected to trade on the NYSE under the ticker symbol “CRCL.”
Circle is the principal operator of blockchain-powered USD Coin (USDC) stablecoin, which has become the fastest growing, regulated, fully reserved dollar digital currency in the world. USDC has grown to more than $25 billion in circulation and has supported more than $785 billion in on-chain transactions.
Under the terms of the agreement, a new Irish holding company will acquire both Concord and Circle and become a publicly-traded company.
The transaction, unanimously approved by the board of directors of both Concord and Circle, is expected to close in the fourth quarter of 2021. However, it is subject to approval by shareholders of Concord and Circle and other customary closing conditions, including any applicable regulatory approvals.
Upon completion of the transaction, existing Circle shareholders will maintain approximately 86 percent ownership of the public entity.
In conjunction with the transaction, investors have committed $415 million in PIPE financing, which when combined with cash in trust and Circle’s recently closed convertible note financing, will provide Circle with over $1.1 billion in gross proceeds upon the close of the transaction.
The proceeds of the transaction will support Circle’s continued growth through ongoing product development in close collaboration with its initial customers.
SPAC deals have become more common in recent years as a faster IPO process with less worry about the swings in broader market sentiment. SPAC is a shell corporation listed on a stock exchange with the purpose of acquiring a private company to enable it to go public without going through the traditional IPO process.
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