(Toronto) Cryptocurrency firms WonderFi Technologies, Coinsquare and CoinSmart Financial have signed an agreement to merge their businesses to create what they claim is Canada’s largest regulated crypto asset exchange.
Interim President and CEO of WonderFi, Dean Skurka, explained that the combined company would have the scale to become the market leader in Canada, a strong balance sheet that will allow for expansion and a clear path to growth. profitability.
Under the agreement, WonderFi will issue approximately 269.7 million common shares to Coinsquare shareholders and approximately 119.1 million common shares to CoinSmart shareholders.
The plan will require court, regulatory and shareholder approval.
Once the deal is completed, WonderFi shareholders will own approximately 38% of the combined company, while Coinsquare shareholders will own approximately 43%. CoinSmart shareholders will own approximately 19%.
CoinSmart shareholders will also be entitled to share in a gain of up to an additional $15 million, based on revenue from CoinSmart’s SmartPay business over a three-year period after the deal closes.