Circle, which was to go public through a merger with Concord Acquisition Corp, is backtracking on the process after a joint decision by both parties.
Circle Temporarily Drops IPO Plans
Circle, the issuing company of the famous USDC stablecoin, intended to go public on the New York Stock Exchange, through a merger with Concord Acquisition Corp, a Special Purpose Acquisition Company (SPAC). However, the two companies announced earlier this week that they were mutually ending this project.
This process was initiated in July 2021, when Circle approached Concord Acquisition. The principle of a so-called SPAC company is to enter the stock exchange specially with a view to merging with a private company whose project it is. This facilitates the process for the company with which an agreement is concluded, which then dispenses with the usual course of the Initial Public Offering (IPO).
Each SPAC has a deadline to complete its goaland in the case of Concord Acquisition, it had until December 10 to reach an agreement, although this deadline could be extended until December 31.
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A separation on good terms
If Circle did not specify the reason for the abandonment of this IPO project, it nevertheless specifies that it is the result of a joint decision with Concord Acquisition. Bob Diamond, President of Concord, expressed his encouragement to Circle:
“I remain confident in Circle’s regulatory approach to building trust and transparency in the financial industry, which has never been more important, and I will continue to be an advocate for the company as it continues. to grow. »
For his part, Jeremy Allaire, co-founder and CEO of Circle, showed gratitude towards Concord, and argues that this setback is only a postponement. with a view to a future listing of his company on the stock exchange :
“Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the guidance and support of Bob Diamond and the wider Concord team. We are disappointed that the proposed transaction has expired, however, going public remains part of Circle’s core strategy to build trust and transparency, which has never been more important. »
For the moment, Circle has not specified the continuation of its projects vis-à-vis the way in which it will go public in the long term. At the same time, she announced break even in the third quarter of this year.
👉 Related – Circle: USDC issuer partners with Apple Pay to expand its payment solutions
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Source: Circle
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
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