Nasdaq Reprimand and TON Strategy's Share Issue
Nasdaq has issued a formal letter of reprimand to TON Strategy, citing a breach of listing rules after the company raised equity and used nearly half its privately raised funds to acquire a large holding in Toncoin without obtaining required shareholder approval.
According to the regulatory filing, the company's issuance of new common stock and warrants during a private investment in public equity transaction in August exceeded the 20 per cent threshold of outstanding shares that triggers an approval requirement.
- The company, formerly known as Verb Technology, announced a $558 million PIPE closed on 7 August.
- Approximately 48.78 per cent of those proceeds were used to purchase Toncoin.
The issuer, re-branded earlier this year to become a listed vehicle focused on digital asset treasury strategy.
Author's summary: Nasdaq reprimands TON Strategy.