Key Takeaways
- Cathedra Bitcoin plans to merge with Kungsleden and list in the U.S.
- Shareholders will vote on the merger on July 22, 2024.
- Kungsleden's stake in the merged entity revised to 72.5% from 77.5%.
Bitcoin mining firm Cathedra Bitcoin is set to merge with U.S.-based mining colocation provider Kungsleden, with plans to list on a major U.S. stock exchange by the second half of 2024. The merger received conditional approval from the Toronto Stock Exchange (TSX).
Cathedra announced in a press release that shareholders will meet on July 22, 2024, to approve the merger, expecting the deal to close shortly thereafter, resuming the trading of Cathedra’s shares.
Originally, Kungsleden was to own a 77.5% stake in the merged entity. However, the deal has been revised to give Kungsleden a 72.5% stake, while Cathedra’s current shareholders will own 27.5%. This revision reduces the consideration paid to Kungsleden shareholders by C$19.2 million, from C$81.7 million to C$62.5 million.
Cathedra also plans to restructure its shares and seek shareholder approval for a share consolidation, aligning with U.S. exchange listing requirements. The consolidation will convert up to 150 pre-consolidation shares into one post-consolidation share, with the exact ratio to be determined later.
This strategic move, resuming after a pause in 2022 due to unfavorable market conditions, aims to improve Cathedra’s market accessibility and liquidity. The anticipated U.S. listing is expected to broaden investor reach and enhance trading volumes.
