NextBlock Cancels Stock Listing Plans After Prominent Backers Claim They Weren’t Involvedbr>
Canadian crypto venture capital firm NextBlock Global, the company has cancelled its planned public listing on the Toronto Stock Exchange will return money to existing investors. The cancellation occurred after Forbes revealed that prominent investors said to be backing the deal in NextBlock materials had not agreed to any participation.
CEO Alex Tapscott advised friends and investors in an email over the weekend. NextBlock was in the process of a $100 million CAD ($78 million USD) fundraise after having already received $20 million CAD in a private offering.
“Today we announced that NextBlock Global will not be proceeding with a go-public transaction,” Tapscott wrote. “After careful consideration, we have concluded that the best course of action is to return to existing investors their capital in full and also to have them participate in any profits. As a young company, we have stumbled in our efforts to take our company public and we will work hard to rebuild the trust of those we have disappointed.”
Tapscott promised to reveal what comes next soon, but gave no specifics.
Forbes reported that four people listed as advisors in an investor deck had not agreed to participate in touting the fundraising or the company. They included Coinbase board member Kathryn Haun, CEO Vinny Lingham of Civic, and Karen Gifford, a regulatory affairs consultant to Ripple.
Tapscott coauthored a book called Blockchain Revolution with his father, Don Tapscott. He has also been involved in the IMF Fintech Advisory Board and World Economic Forum Blockchain Global Future Councils.