IronFX and FXDD, two of retail brokers running Metatrader4 platform, are on their way to merge and go public on Nasdaq through a reverse takeover (RTO) of already publicly traded company.
IronFX and FXDD, two of retail brokers running Metatrader4 platform, are on their way to merge and go public on Nasdaq through a reverse takeover (RTO) of already publicly traded company.
Nukkleus Inc., as a public company already listed on OTC Markets Group (OTCMKTS:NUKK) took filing with the US Securities and Exchange Comission last Friday, June 3. Signed by Emil Assentato, CEO of Nukkleus and Tradition North America.
After later finding, it's also come to note that Tradition also controls FXDD.
Merging Process And Requirements
The filing marked the initial step to merge IronFX and FXDD, which then merged into the publicly-traded Nukkleus.
Following that initial step, stock swap would occur involving 9.9% of the companies shares, allowing disclosure of the transaction. Nukkleus will be acquiring 9.9% of IronFX and FXDD, while the companies entered into a Global Service Agreement to consolidate further until closing.
Subsequently, regulatory approvals are required to finalize the deal. Therefore, the next stage of closing is still tentative until the end of November.
Market Valuation
On 27 May, Nukkleus acquired IBIH (IronFX' parent) by nearly 24.2 million of its own common shares (9.9% of shares) and aggreed to acquire the remaining shares of 219.84 million common stocks. Each in purchase price of USD 1.00
If the deal are not met by the end of this year, IBIH has to return the receiving of USD 1.0 million to Nukkleus, and all prior stock movement shall be reversed back to their initial.
However if that deal works seamlessly, a new brokerage giant would emerge considering Nukkleus current market cap which is valued at USD 217 million.
Both FXDD and IronFX has been known to be involved with bad rep and scandals. FXDD reported to leave US market due to their disputes with local regulators. While IronFX burdened with massive complaints from their traders whose accounts deposit can't be withdrawn since last year. Implying a major challenge for these broker to maintain their status should the merging went ahead successfully.