Verb Technology Company, a Publicly Listed Firm in the U.S., to Raise $558 Million to Establish TON Reserves and Rebrand as TON Strategy Co.

Verb Technology Company Plans to Raise $558 Million through Private Placement

Verb Technology Company, a social commerce technology firm listed on the Nasdaq, plans to raise $558 million through a private placement, transforming into the world’s first publicly traded company to make Toncoin ($TON) its primary financial reserve asset.

Initially focused on assisting brands in product sales through live streaming and social media, Verb Technology stated that while adopting the TON financial strategy, existing business operations will continue and are expected to further expand.

Following the transaction, which is anticipated to be completed around August 7, the company will be renamed TON Strategy Co. Most of the raised funds will be used to acquire TON tokens and earn staking rewards, with the goal of becoming one of the largest holders of TON globally.

This transaction will occur in the form of a Public Investment in Private Equity (PIPE) post-listing, involving the sale of approximately 58.7 million shares at $9.51 per share. The investment is led by Kingsway Capital, with core investors including Blockchain.com, Vy Capital, Ribbit Capital, and Graticule. Other participants include Pantera, ParaFi, Animoca, Arrington Capital, Kraken, BitGo, FalconX, The Open Platform (TOP), Hivemind Capital, and CMCC Global.

Verb Technology indicated that 77% of the raised funds will be held in cash reserves, with the planned TON holdings expected to account for approximately 5% of the market capitalization of TON’s circulating supply. About 36% of the company’s equity will be subject to a lock-up period of 6 to 12 months.

$TON is the native token of The Open Network (TON), a Layer 1 blockchain that supports the Web3 infrastructure for the messaging platform Telegram. Earlier this year, Telegram designated TON as its sole official blockchain, applicable to mini apps, digital assets (such as tokenized usernames), and payments for Telegram advertisements in most countries. Telegram claims to have over 1 billion monthly active users globally and has integrated TON directly into the app interface via TON Wallet.

Manuel Stotz, who will soon serve as Chairman of Verb Technology (also CEO of Kingsway Capital and the TON Foundation), stated that Telegram is the preferred messaging app for cryptocurrency users, and $TON has both appreciation potential and staking yields.

Peter Smith, CEO of Blockchain.com, will join the company as a special advisor. The new management team includes Veronika Kapustina as CEO (former advisor to the TON Foundation and a former Morgan Stanley banker) and Sarah Olsen as CFO (former senior executive at JPMorgan’s Onyx division).

In response to this news, Verb Technology’s stock price (ticker: VERB) surged 114.27% on Monday, closing at $20.42. The price of the TON token has decreased by approximately 5% in the past 24 hours, trading at $3.37 as of the time of publication.