Huobi Acquired Company With Registration On the Hong Kong Stock Exchange
Huobi crypto platform has acquired a controlling stake in Pantronics Holdings, which is registered on the Hong Kong Stock Exchange (HKE), according to the official HKE document.
At the end of August, the team of Pantronics, a manufacturer of electronic products, suspended trading with its shares on HKE in accordance with the exchange's rules regarding mergers and acquisitions, mentioning a proposal that it should receive shortly.
At the same time, there appeared information about the purchase of a 73% stake in Pantronics by Huobi. However, it now follows from the HKE document that Huobi bought 66% of the securities, and the blockchain platform Fission Capital became the owner of a small number of shares, 5.41%.
Although, the deal has all signs of a reverse takeover, Fission Capital spokesman Sandy Peng declared that this is a direct purchase as Huobi plans to launch new blockchain startups with the help of Pantronics.
Despite the refutation of the information on the reverse takeover, this way can be quite convenient for private companies that can avoid a long procedure to be recognised as publicly-held enterprises. This acquisition allows the company to automatically be included in the stock exchange.
Mike Novogratz who placed shares of his Galaxy Digital bank on TSX Venture Exchange, gives a vivid example of such actions.