EQONEX Limited (NASDAQ: EQOS) has inked a strategic partnership with Bifinity UABm, which is likely to be transformational for both companies, strengthening their footprint and expanding their regulated offerings.
Following the news, shares of the digital assets financial services company gained over 15% in the pre-market trading session today.
EQONEX is a digital asset financial services and advisory company with an exchange, which will be publicly listed in the U.S. It provides products, architecture, and infrastructure for the financial markets covering the digital asset ecosystem globally. The firm operates EQONEX, a cryptocurrency exchange that offers the trading of virtual currencies, along witj Digivault, a regulated, high-security crypto and digital asset custody solution.
Details of the Agreement
Founded in 2021, Bifinity UAB is part of the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider Binance Group.
Bifinity is the official fiat-to-crypto payments provider for Binance, processing millions in transactions and connecting traditional finance to world-leading blockchains, transforming how businesses and people send and receive money around the world.
Per the terms of the deal, Bifinity will advance a $36 million convertible loan facility with an 18-month maturity to EQONEX. The implied conversion price is $1.89 per share based on the 50-day average closing price of EQONEX shares immediately before the loan Agreement date.
Both companies will collaborate to maximize business synergies and strengthen their businesses.
Furthermore, Bifinity will be entitled to the right to appoint top management positions for EQONEX including CEO, CFO, and Chief Legal Officer from Bifinity, and to nominate two seats on EQONEX’s Board of Directors.
Further, both companies will continue to engage in non-binding discussions to gauge potential merger opportunities.
The addition of Bifinity’s superior technology and experience in building, operating, and marketing digital platforms and products will help boost the growth and scale of the EQONEX ecosystem, especially Digivault.
Further, EQONEX’s licensing framework will help strengthen Bifinity’s geographical footprint.
Management Weighs In
EQONEX Chairman, Chi-Won Yoon, commented, “Bifinity shares our strong belief in helping to bridge the world of traditional finance with cryptocurrencies, as well as our conviction to operate to the highest standards of investor protection, regulatory oversight, security and governance.”
Helen Hai, President of Bifinity, stated, “EQONEX has already made significant progress in building out the foundational regulated infrastructure for its ecosystem. Their institutional approach and ability to utilize global regulatory frameworks to build a compliant business directly complements our retail focus and will greatly benefit Bifinity over the long-term.”
EQONEX stock has picked up a rating from one analyst in the past three months. H.C. Wainwright analyst Kevin Dede has a Hold rating on EQONEX.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 100% Bullish on EQOS stock, compared to a sector average of 69%.
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