Cathedra Bitcoin plans to merge with Kungsleden and list on a major U.S. stock exchange by the second half of 2024.
Bitcoin mining firm Cathedra Bitcoin is poised to merge with U.S.-based mining colocation provider Kungsleden after receiving conditional approval from the Toronto Stock Exchange (TSX). The merger is part of a strategic move that also involves a resumed effort by Cathedra to list its shares on a major U.S. stock exchange by the second half of 2024.
Cathedra made the announcement in a press release on Tuesday, indicating that the shareholders' meeting to approve the merger plan is scheduled for July 22, 2024. Following the meeting, they anticipate the deal to close shortly thereafter, which will then allow the trading of Cathedra's shares to resume.
As reported by TheMinerMag, Kungsleden was originally set to own a 77.5% stake in the merged entity, but the deal has been revised, with Kungsleden now expected to own 72.5%, while the remaining 27.5% will be owned by Cathedra's current shareholders. This adjustment effectively reduces the total consideration paid to Kungsleden shareholders by C$19.2 million, from C$81.7 million to C$62.5 million.
Furthermore, Cathedra plans to alter its share structure and seek shareholder approval for a share consolidation, aligning its practices with those required for U.S. exchange listing. The share consolidation will involve a ratio of one post-consolidation share for up to 150 pre-consolidation shares, the exact ratio to be finalized by the directors at a later date.
This strategic move comes after a pause in 2022 due to unfavourable market conditions, and it signifies Cathedra's renewed efforts to enhance its market accessibility and liquidity. The impending U.S. listing aims to broaden investor reach and improve trading volumes for the company.
