European bitcoin trade Safello says it has raised 11 million Swedish krona ($1.3 million) to cowl the prices of a deliberate preliminary public providing within the first half of 2021.
The Stockholm-based firm goals to listing on Nasdaq’s First North Progress Market, it introduced Friday.
The funding, by way of an issuance of latest shares, got here from Digital Foreign money Group, CoinDesk’s mum or dad firm. Enterprise capital companies Northzone, White Star Capital, and Techstars have already got stakes within the trade.
Frank Schuil, Safello CEO and co-founder, informed CoinDesk he had thought-about issuing shares digitally as tokenized securities however he concluded the expertise has “not matured to a stage we really feel snug with.” As such, Safello is “going the standard route,” he mentioned.
The Nasdaq First North itemizing is a “large factor” for Safello and it’s about “belief constructing” with regulators, based on Schuil. The itemizing approval course of will contain Swedish monetary regulators who will carefully scrutinize the corporate and its prospectus.
The agency sees the current bull market as being favorable timing for the IPO announcement. “Timing-wise, we now have all the time been profitable. Our first funding spherical was on the peak of the bull market in 2013, and our final funding spherical was on the peak of 2017,” mentioned Schuil.
“We have a look at the long-term prospect of crypto and blockchain. Whereas we see the worth swings, we all know the swings and we are able to anticipate the swings (for us the costs are related for the enterprise) – our complete philosophy is to develop into worthwhile in a bear market,” he mentioned.
For the IPO, Safello has employed company finance specialist Corpura Fondkommission as its monetary adviser, and the legislation companies Schjødt and Kassai Legislation have been named authorized advisers.
“We see vital curiosity within the crypto section in its entirety – and in Safello as an organization specifically,” mentioned Carl Kindal, associate at Corpura Fondkommission, in a press release. “That is evident as the problem was oversubscribed to SEK 48 million, which corresponds to a subscription price of virtually 500%.”