Chinese crypto trading exchange Huobi has recently announced that it has acquired the controlling stock interest in Hong Kong-based Pantronics Holdings Ltd. via a backdoor listing deal. A backdoor listing, which is also known as a reverse takeover or reverse Initial Public Offering (IPO), allows a secretly held company to purchase an openly traded company evading the public offering process, regulatory issues, and due meticulousness. Upon closing of the deal, the purchaser gains spontaneous inclusion on a stock exchange.
Huobi reportedly acquired 80 percent of Pantronics Holdings Ltd which makes the crypto exchange the real controller of the power-related electrical and electronic products manufacturer. Pantronics halted trading its shares on the Main Board of the Hong Kong Stock Exchange (HKEx) on August 22, 2018, due to a promising offer to be made below the Rule 26 of the Hong Kong Codes on Takeovers and Mergers.
As per the crypto trading exchange Huobi CEO Li, the exchange business is presently not fully compliant on a global scale, so a backdoor listing would be very difficult to operate. Li further added that he believes the old-style financial market will hold the blockchain economy in the future. HKEx proposed measures are reportedly not aimed at blocking backdoor listings, they intend to ensure that companies do not skirt rules and undermine investor confidence.
According to David Graham, HKEx’s chief regulatory officer the company wants to make sure that the excellence of the assets and the eventually combined company to be listed on the exchange has finished suitable due diligence and selection process.
As Cointelegraph reported, at present this crypto trading exchange Houbi have gained almost 8 percent in trading in just 24 hour period, while the token’s price surge to the recent acquisition. Pantronics Holdings Ltd.’s market capitalization is now more than HKD 926 million ($118 million). The maximum price of Bitcoin was recorded in December 2017 after which the exchange attracted many investors.
The post Chinese Crypto Trading Exchange Huobi Acquires Stock Interest Via Backdoor Listing appeared first on OWLT Market.
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