Sonic Labs Allocates $40 Million to SonicStrategy for Nasdaq Listing and U.S. Growth
Business/Finance

Sonic Labs Allocates $40 Million to SonicStrategy for Nasdaq Listing and U.S. Growth

SonicStrategy has secured a $40 million convertible funding from Sonic Labs aimed at expanding its operations and pursuing a Nasdaq listing.

What You Should Know:

  • SonicStrategy has received $40 million in convertible funding from Sonic Labs, the foundation behind the Sonic blockchain, in the form of a six-month, zero-coupon convertible note.
  • The funding is intended to bolster SonicStrategy’s treasury, validator operations, and blockchain investments, and can convert to common stock at $4.50 per share if certain conditions are met.
  • This investment is part of Sonic’s ambitions to expand into the U.S., including plans to establish an ETF and pursue a PIPE vehicle.

Funding Details: Spetz, trading as SonicStrategy, announced that it is receiving $40 million from Sonic Labs through a convertible note. If SonicStrategy uplists to a U.S. exchange like the Nasdaq and garners at least $40 million in additional capital, this debt can be converted into shares at $4.50 each.

These shares will remain locked for a period of three years, while Sonic Labs’ token contribution will be locked for four years.

The funds will assist SonicStrategy in enhancing its treasury, operations, and block investments. The companies expect to finalize the deal within five business days as per Canadian Securities regulations.

This investment is a part of Sonic’s broader plan to enter the U.S. following a community decision for a $150 million expansion plan, which will include efforts to create an exchange-traded fund and explore opportunities for private investment in public equity (PIPE).

Sonic Labs’ CEO, Michael Kong, expressed confidence stating, “This investment reflects our confidence in their execution and their ability to provide institutional-grade infrastructure for the Sonic ecosystem.”

Market Context: Sonic’s S tokens have risen about 0.4% in the last 24 hours; meanwhile, the broader crypto market saw a 1.3% increase as measured by the CoinDesk 20 index.

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