Coinsquare, WonderFi Will Negotiate To Establish New Crypto Giant Overtake Others In Canada

Key Points:

• Coinsquare and WonderFi are in advanced talks to merge to become the largest cryptocurrency exchange in Canada.
• Only a few days have passed since Coinsquare canceled an earlier agreement to buy Coinsmart Financial, another Canadian-based cryptocurrency exchange.
• Although the specifics of the proposed two companies’ combination remained unknown, one scenario envisaged Coinsquare stockholders acquiring a controlling interest in the combined business.

According to sources cited by BNN Bloomberg, the two biggest exchanges in Canada, Coinsquare and WonderFi, are advanced in their merger negotiations.

With around 1.15 million users, the combined company would overtake the competition as the largest cryptocurrency exchange in Canada. Although it’s uncertain whether the purchase will be completed, an announcement could be made in the upcoming days, according to BNN Bloomberg.

WonderFi issued a statement after the company’s shares were suspended at 1:51 EST in which it acknowledged having “preliminary negotiations” with other companies about possible acquisitions and being acquired. At 3:15 PM EST, trading in WonderFi’s shares was restored.

WonderFi said in a statement:

“These discussions are preliminary in nature and are ongoing, and no assurance can be given that any agreement or agreements will be reached, or that the terms of a transaction will be agreed upon or that a transaction will be completed. The company does not intend to make further comment unless or until an agreement has been entered into and there is a transaction to announce.”

Although the specifics of a merger between the two companies are still unknown, a deal would result in the creation of Canada’s biggest crypto exchange.

According to one of the individuals, one possibility would see Coinsquare owners acquire a majority position in the combined company and possess more board seats than WonderFi. There is no guarantee that a transaction would be completed between the two companies, the sources said, even if the negotiations may be advanced and an announcement might come in the next few days.

The cryptocurrency trading platform CoinSmart was intended to be acquired by Coinsquare, but the plans were scrapped this month. The management and board of directors of Coinsmart said in a statement that they are evaluating the validity and effectiveness of Coinsquare’s decision to dissolve its merger.

According to a person with knowledge of the conversations with WonderFi, Coinsquare’s regulatory standing with Canada’s Investment Industry Regulatory Organization may enable it to assist in the consolidation of struggling crypto companies there.

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Harold

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