New Quantum goes public in the USA

Australian fintech as a service technology platform provider, New Quantum Holdings, which has recently acquired 80% of Morrison Securities, is planning to leverage the move to expand its offering and become a publicly listed company via a business combination with Nasdaq-listed, Canna-Global Acquisition Corp.

The two companies have announced they have entered into a definitive bid implementation and business combination agreement which will result in New Quantum becoming a wholly-owned subsidiary of Canna-Global.

Following the partnership, New Quantum will be listed on the Nsadaq Global Market under the “NQH” ticker symbol.

NQH chief executive, Jong Chung, said the recent acquisition of a stake in Morrison Securities from the Australian Securities Exchange (ASX)-listed, Sequoia Financial Group earlier this month, has confirmed its position in the Aussie fintech industry and provided “the ballast to rapidly expand [our] offering in the market”.

Also, the business combination transaction reflected an estimated proforma enterprise value of New Quantum at USD $800 million.

The combined entities have, in addition to a leading technology platform, $20 billion of committed funds under management, and a qualified additional pipeline of $80 billion, the firm said in the press release.

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 said, commenting on the announcement: “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.”

Canna-Global Acquisition Corp is a blank check company whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.

The firm’s chief executive, Gerry Combs, added: “We are proud to merge with a homegrown company in Australia 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.”