Coinsmart and CoinSquare, two Canadian crypto trading platforms, are set to merge following an acquisition by Coinquare.
The planned acquisition and integration will see Coinsquare manage over CAD$350 (approx. $258 million), per the announcement on Thursday.
The deal will see CoinSmart hold a 12% ownership stake in Coinsquare on a pro forma basis.
Shares in CoinSmart rose after the open on Friday, trading around CAD$0.32 shortly after the market open, up from a close of CAD$0.18 on Thursday. Shares were trading at CAD$0.19 at the time of writing, per data via TradingView.
CoinSmart CEO Justin Hartzman, said the firm is looking to build one of the largest regulated crypto asset trading platforms in Canada. He went on to say despite the transaction will provide "the torque needed to be in a favourable position entering the next bull run."
Coinsquare, CEO Martin Piszel, echoed Hartzman, adding that the firm's products will be "backed by the highest standards of regulation in the industry." Coinsquare is currently working towards gaining approval to become Canada's first crypto asset trading platform regulated as an Investment Industry Regulatory Organization of Canada (IIROC) dealer and marketplace member.
The firm previously faced wash trading charges from Canada's regulator, eventually settling with the Ontario Securities Commission (OSC).
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