Nasdaq Warns TON Strategy After $272 Million Toncoin Purchase
Nasdaq has issued a warning letter to TON Strategy after the company's $272.7 million purchase of Toncoin (TON) tokens, citing a violation of listing rules.
The breach involves the failure to secure shareholder approval when raising funds through a private investment in public equity (PIPE) transaction, resulting in the issuance of shares without shareholder consent, exceeding the 20% threshold of its total outstanding securities allowed without such approval.
According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC), in August 2025, the company—formerly known as Verb Technology—announced plans to raise $558 million with Kingsway Capital to launch the TON Treasury Strategy Company, with nearly half of these funds (48.78%) used to acquire Toncoin, leading to the violation.
The company has been warned by Nasdaq for violating listing rules.
Author's summary: Nasdaq warns TON Strategy over rule violations.