Canadian cryptocurrency exchanges Coinsquare and WonderFi are in advanced merger talks to create a single large trading platform in Canada, Bloomberg has learned, citing a person familiar with the matter.
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Although details of the deal are yet to be seen, one scenario would see Coinsquare shareholders "take a majority stake in the combined business," the report says. It is expected that Coinsquare would also control the majority of the board than WonderFi, the sources added. No final decision on the merger has been made yet, the report points out.
The news comes just a few days after Coinsquare abandoned plans to purchase the other Canadian crypto trading platform called CoinSmart. The company said that its management and its board of directors are in the "process of evaluating the validity and effectiveness of Coinsquare's purported termination" of the share purchase agreement. It is unclear what was the reason behind the decision.
Coinsquare was planning to acquire CoinSmart for $3 million in cash in addition to 5.2 million in shares of Coinsquare, valued at over $26 million. Under the agreement, CoinSmart would have approximately 12% ownership in Coinsquare on a pro-forma basis.
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