VERB closes $558 million private placement for Toncoin treasury strategy

Verb Technology Company Inc. (NASDAQ: VERB) completed a $558 million private placement to fund its strategy of becoming a publicly traded treasury reserve for Toncoin, the native cryptocurrency of the TON blockchain.

The private placement involved approximately 58.7 million shares of common stock and included participation from over 110 institutional and crypto-native investors. Kingsway Capital led the transaction, with participation from Vy Capital, Blockchain.com, Ribbit Capital, and Graticule among others.

The company plans to use the majority of proceeds to acquire Toncoin ($TON), which serves as the native cryptocurrency for the blockchain integrated with messaging platform Telegram. The strategy aims to generate staking rewards to manage and grow the company's Toncoin exposure.

Verb Technology intends to rebrand as TON Strategy Co. to reflect its new direction while continuing to operate its existing social commerce technology and video marketing business units.

The company announced new leadership to execute the digital asset strategy. Manuel Stotz, founder and CEO of Kingsway Capital and president of the TON Foundation, will serve as executive chairman. Veronika Kapustina, previously a senior advisor to the TON Foundation, becomes CEO. Sarah Olsen, co-founder of Europa Partners and former head of corporate development for Onyx by JP Morgan, joins as CFO.

Peter Smith, CEO and co-founder of Blockchain.com, will serve as special advisor to the company.

Cohen & Company Capital Markets served as lead financial advisor to Kingsway and sole placement agent to Verb Technology. Reed Smith LLP advised Kingsway, while Perkins Coie LLP served as legal advisor to the company.

The securities were offered through a private placement under exemptions from Securities Act registration requirements.

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