New Quantum Holdings Plans To Become Public In The USA Via A Business Combination Agreement With Nasdaq-Listed Canna-Global Acquisition Corp; Transaction Values New Quantum Holdings At Pro Forma Enterprise Value Of $800M Expected To Close 2H 2023
Canna-Global Acquisition Corp ("Canna-Global") (NASDAQ:CNGL), a special purpose acquisition company, today announced the signing of a definitive Bid Implementation and Business Acquisition Agreement with Sydney-based New Quantum Holdings Pty Ltd. ("New Quantum"), a provider of a vertically integrated technology and infrastructure offering for financial services firms, that will result in New Quantum becoming a wholly-owned subsidiary of Canna Global, which is expected to be listed on the Nasdaq Global Market under the ticker symbol "NQH"
The business combination transaction reflects an estimated proforma enterprise value of New Quantum at USD $800M and follows New Quantum's recent acquisition of a majority interest in Morrison Securities from the ASX-listed, Sequoia Financial Group in June 2023. The combined entities have, in addition to a leading technology platform, AUD $20 billion of committed funds under management, and a qualified additional pipeline of AUD $80 billion.
New Quantum CEO Jong Chung comments, "New Quantum's technology and platform have the potential to revolutionize the financial services industry by providing high value services at a scale only their technology makes possible."
He added: "When we acquired 80 percent of Morrison Securities, it not only confirmed our leadership position in the Australian fintech industry, but also provided us with the ballast to rapidly expand our offering in the market."
Gerry Combs, CEO of Canna-Global Acquisition Corp comments, "New Quantum is a pioneer with its proprietary Fintech as a service technology platform. We are proud to merge with a technology company that is already high growth, with strong gross margins, and attractive recurring revenue streams. The Nasdaq is the right home for New Quantum and is in line with its growth plans in the USA. Access to public markets will accelerate New Quantum's ability to drive growth and innovation in an industry ripe for disruption".
New Quantum's primary sponsor is Beaconsfield Capital Management, a Boston and London based hedge fund focused on investments in leading technology companies. Beaconsfield Capital Management Co-Founder and CIO Shantanu Jha says, "We are pleased to see New Quantum, and its redoubtable financial technology platform, earn a place on the Nasdaq. We hope to continue guiding New Quantum in developing its market leading technology and its acquisition of leading financial services firms in Australia and Asia.
"We continue to believe New Quantum's operating system for financial services firms, combined with the venerable financial infrastructure of the newly acquired Morrison, exemplifies the power of vertically integrated business models that can internalise the value created by the underlying technological automation."
In connection with the proposed transaction, Canna-Global intends to file relevant materials with the US Securities and Exchange Commission (SEC) including a registration statement on Form S-4, which will include a proxy statement/prospectus, and other documents regarding the proposed transaction expected to be finalised in the fourth quarter of 2023. ASIC (Australian Securities & Investments Commission) approval for the Bid Implementation is expected by mid-June, 2023.