New Zealand based Retail FX brokerage firm Blackwell Global has announced that it has taken public a company called Blackwell Global Holdings Limited on the New Zealand Stock Exchange’s NZX Main Board, via a transaction that effectively amounts to a reverse takeover of a publicly traded shell company called NZF Group Limited.
The initial market value of the publicly traded entity is NZD 4 million (USD $3 million).
As indicated above, the transaction does not involved the group’s FX brokerage businesses.
Blackwell Global Chairman Michael Chai indicated that one of the key motivations for going public is to be able to raise money and expand the group’s businesses worldwide. Blackwell already has a fairly global presence, with regulated subsidiaries in the UK, Cyprus and Hong Kong.
What is a Reverse Takeover?
A Reverse Takeover is a type of merger used by private companies to become publicly traded without resorting to an initial public offering. It is effected by having a (usually smaller) publicly traded company buy a (usually larger) private company, paying with its own shares. The public company will issue more new shares than it had outstanding before the deal, such that the shareholders of the (now acquired) private company end up owning more than 50% of the combined entity. When completed, the private company has effectively become a publicly traded one.
A Reverse Takeover is also commonly known as a reverse merger or a reverse IPO.
The press release issued this morning on the matter by the company reads as follows:
NZF Now Trading as BGI on NZ Main Board After Blackwell Global Group’s Acquisition of Cornerstone Position
Auckland, New Zealand – 24 July 2017 – Global brokerage group Blackwell Global announces that its acquisition of a cornerstone shareholding position in NZF Group Limited (NZF), in conjunction with the restructure of NZF, has been successfully completed and NZF has been renamed Blackwell Global Holdings Limited (ticker code BGI). BGI has resumed trading on the NZX Main Board, New Zealand’s senior Stock Market.
NZF originally commenced trading in 1999 and provided financial services including investments and a range of personal and commercial lending products. Following the acquisition of its cornerstone position, Blackwell Global Holdings Limited plans to raise further new capital to pursue expansion of its lending products and expertise as a derivative issuer.
“The acquisition of our cornerstone shareholding in NZF Group Limited is an important step in our strategy of creating business synergy and solidifying our foothold in the global finance industry,” said Michael Chai, Chairman of the Blackwell Global Group, “We aim to inject renewed stability with Blackwell Global’s asset financing solutions. Our external investors can be assured of the stable support, flexibility and expertise we offer with our customised solutions, a service we have built our global business upon.”
Michael Chai, James Law and Ewe Leong Lim have also been appointed to the Board of Directors of Blackwell Global Holdings Limited, joining Sean Joyce and Craig Alexander who will continue as independent directors. Former director, Mark Thornton, will undertake the role of Chief Executive Officer of the finance company operation to be launched later this year.
About Blackwell Global Group
Founded in 2010, the Blackwell Global group of companies (“Blackwell Global”) were established to offer investment solutions for private and institutional clients, including financial services and products ranging from “full-stack” financing solutions, as well as trading services such as forex, contracts for difference, spot and bullion precious metals, global stocks, options, and futures. Blackwell Global provides superior liquidity, 24-hour technical support, market research tools, educational materials, professional partnership programmes and fully integrated trading platforms for its clients. With a global presence in over 90 countries, Blackwell Global has main offices in the separately regulated markets of Cyprus, Hong Kong, New Zealand and the United Kingdom. In July 2017, the group signed a multi-year partnership with Everton Football Club to become their first Official Forex and Brokerage partner.