Verb Technology Stock Is Soaring Monday: Here's Why

Verb Technology Co (NASDAQ:VERB) shares are rising Monday after the company announced a private placement to implement a TON treasury strategy.

What To Know: Verb Technology has announced a complete rebrand and strategy shift focused on Toncoin (CRYPTO: TON), the native cryptocurrency of The Open Network blockchain, which powers Telegram’s ecosystem.

The company announced the pricing of an upsized and oversubscribed private placement for approximately $558 million in gross proceeds. Verb Technology plans to use the proceeds to rebrand as TON Strategy Co and become the first publicly traded Toncoin treasury reserve company.

Verb will sell approximately 58.7 million shares of its common stock for $9.51 per share in a private placement transaction with institutional and accredited investors. Following closing, the company intends to use the majority of the net proceeds to acquire Toncoin. Verb plans to generate staking rewards to grow its Toncoin exposure in a cash flow positive manner, while continuing its existing business operations.

“Telegram is the preferred messenger for the growing global crypto community and $TON is the currency that powers the Telegram ecosystem. In my judgment, permanent capital vehicles are particularly suitable for long-term holdings of $TON, which not only has the potential to compound in value, but also offers staking yield, meaning TSC can benefit from staking rewards,” said Manuel Stotz, incoming executive chairman.

The transaction is expected to close on or around Aug. 7. The company’s common stock will continue to trade on the Nasdaq under the ticker “VERB” following closing with the updated treasury strategy effective immediately.

VERB Price Action: Verb Technology shares were up 89.9% at $18.20 at the time of publication Monday, according to Benzinga Pro.

Read Next:

• DJT Falls As Trump Media Floats Utility Token Concept, Posts $20 Million Quarterly Loss

Photo: alfernec/Shutterstock.com