The reverse merger agreement that would have taken Tera Exchange public has hit a roadblock.
Tera’s Bitcoin derivative platform was approved by the US Commodity Futures Trading Commission (CFTC) last year, though the derivative products themselves have yet to be approved. Its transformation into a publicly traded company may help further instill investor and user confidence in the platform, which would be subject to greater regulatory oversight and reporting requirements.
Tera Group Inc. and MGT Capital Investments Inc. had signed a letter of intent (LOI) to merge, enabling Tera to become a publicly traded entity.
B2Broker Extends its Multi-Asset Liquidity Pool with Tools for BrokersGo to article >>
MGT Capital is a holding company whose subsidiaries engage in online and mobile gaming. It is traded on NYSE MKT, formerly the American Stock Exchange, worth $0.43 per share and having a total market cap of $6 million.
The self-imposed deadline for finalizing details of the agreement was this past Monday, and parties have not agreed upon a binding extension. MGT Capital, in providing the update, did not specify which aspects of the agreement still need work.
Requests for clarification have been made from both companies, but replies had yet to be received as of publishing time.
Robert Ladd, CEO of MGT, commented in a press release, “The upside opportunity of a deal is extraordinary for our stockholders, and we remain committed to working with Tera management and legal team to finalize the complex agreement.”