Retail FX brokerage firm Blackwell Global, which is based out of New Zealand, has made an announcement that it has made a transaction by which the firm Blackwell Global Holdings Limited was made public. The transaction resulted in a reverse takeover of a company known under the name NZF Group Limited.
The named company was traded for the amount of NZD 4 million which equals to USD $3 million. This transaction does not, however, involve any of the group’s FX brokerage businesses.
According to Michael Chai, the chairman of Blackwell Global, one of the main reasons for making this company public is in order to raise money and subsequently expand businesses pertaining to this group. It should be noted that Blackwell was already present on the global scene, having subsidiaries which are regulated in Cyprus, United Kingdom and also Hong Kong.
It is important to explain what exactly a reverse takeover actually is as it is not a commonly taken route in these types of businesses. It is a special type of merger in which the private companies become traded publically without having to go to a public offering. The ‘new’ public company will then issue more shares than there one the ones which were outstanding before the takeover, so now the shareholders can buy them and own more than 50% of the entity which makes it a publicly traded company.
Michael Chai commented: “The acquisition of our cornerstone shareholding in NZF Group Limited is an important step in our strategy of creating business synergy and solidifying our foothold in the global finance industry. We aim to inject renewed stability with Blackwell Global’s asset financing solutions. Our external investors can be assured of the stable support, flexibility, and expertise we offer with our customized solutions, a service we have built our global business upon.”