Broker Webull will scale back its cryptocurrency services due to an unfavorable regulatory environment in the US as it prepares to list on the Nasdaq.
Webull Corporation and SK Growth Opportunities Corporation, a publicly traded special purpose acquisition company (SPAC), have entered into a definitive agreement to merge their businesses, CoinMarketCap reports.
It is worth noting that this is not Webull's first attempt to go public. Previously, the company faced significant hurdles, mainly related to its cryptocurrency offerings, said Anthony Denyer, Webull's CEO in the US.
"For a variety of reasons, we weren't able to do it... I can name a few, and I think the last one is cryptocurrencies. The SEC has not been friendly, which is widely known," Denier noted.
Denier said Webull sold its digital assets business and removed all cryptocurrency offerings from its platform at the end of the third quarter of 2023, due to unclear SEC rules.
The proposed transaction values the combined company at $7.3 billion, with no minimum cash requirement and no assumption of further share repurchases by SK Growth shareholders.
The boards of directors of Webull and SK Growth have unanimously approved the proposed transaction. The merger is expected to close in the second half of 2024, subject to shareholder and regulatory approvals and other conditions.
"The merger with SK Growth is an important milestone for Webull. We believe that SK Growth's partnership and expertise are fully aligned with our long-term vision to make Webull the platform of choice for a new generation of investors globally," said Anquan Wang, founder and CEO of Webull Corporation, on the future of the merger.
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