SAN JOSE, Calif. - Blockchain Coinvestors Acquisition Corp. I (Nasdaq: BCSA) and Linqto, Inc. revealed on Monday that they have entered into a definitive agreement for a business combination. The transaction is set to close in the second half of 2024, with Linqto becoming a wholly-owned subsidiary of BCSA and the combined entity operating under the Linqto name post-merger.
Linqto, a private investment platform, provides accredited investors with access to investment opportunities in private technology companies, including unicorns. The company aims to make private investing more accessible and liquid.
Joe Endoso, CEO of Linqto, expressed enthusiasm for the merger, anticipating enhanced platform capabilities and expanded investor opportunities. The deal values Linqto at an implied enterprise value of approximately $700 million, subject to adjustments.
The agreement stipulates that Linqto's existing common equity will be canceled, and shareholders will receive new BCSA shares in exchange. Moreover, BCSA will change its jurisdiction of incorporation from the Cayman Islands to Delaware before the transaction's close, converting each BCSA ordinary share into a share of common stock of the Delaware entity on a one-to-one basis.
Both companies' boards have unanimously approved the transaction, which is contingent on shareholder approval and customary closing conditions. Further details, including the business combination agreement, will be available in a Current Report on Form 8-K filed by BCSA with the Securities and Exchange Commission (SEC) and through subsequent SEC filings.
Legal counsel for the transaction includes Seward & Kissel LLP for BCSA and Lowenstein Sandler LLP for Linqto. This merger is based on a press release statement and is subject to regulatory and shareholder approvals.
InvestingPro Insights
As Blockchain Coinvestors Acquisition Corp. I (BCSA) prepares to merge with Linqto, Inc., investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, BCSA has a market capitalization of $149.38 million and is trading at a high earnings multiple with a P/E ratio of 129.63.
Over the last twelve months as of Q3 2023, the adjusted P/E ratio has been 85.91, reflecting the company's profitability during this period.
One of the InvestingPro Tips highlights that BCSA's stock tends to exhibit low price volatility, which could be appealing for investors looking for more stable investment options in the tech sector. Still, it is important to note that BCSA does not pay a dividend to shareholders, which might influence the investment decisions for those seeking regular income streams from their investments.
Investors considering BCSA as part of their portfolio can also take into account that the company's short-term obligations exceed its liquid assets, which may pose a risk in terms of financial flexibility.
For those looking for more comprehensive analysis and additional InvestingPro Tips, BCSA has a total of 7 tips available on Investing.com's professional platform, which can be accessed at https://www.investing.com/pro/BCSA. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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