Verb Technology Company, Inc. (NASDAQ: VERB) has successfully closed a $558 million private placement to fund its strategic pivot toward becoming a publicly traded treasury reserve for Toncoin (TON), the native cryptocurrency of the TON blockchain integrated with Telegram. The oversubscribed financing round involved approximately 58.7 million shares of common stock and attracted participation from over 110 institutional and crypto-native investors.
Kingsway Capital led the transaction, with backing from prominent entities including Vy Capital, Blockchain.com, Ribbit Capital, Graticule, Pantera Capital, Animoca Brands, Kraken, and BitGo, alongside individual investors like Ethena Labs founder Guy Young. The majority of proceeds will be allocated to acquiring and staking Toncoin, aiming to generate rewards while positioning TON as a core treasury reserve asset. This strategy leverages Telegram's user base exceeding 900 million, where TON facilitates the platform's Mini App ecosystem.
Concurrently, Verb will rebrand as TON Strategy Co. (TSC) but continue operating its existing social commerce units, including MARKET.live and LyveCom. Leadership restructuring appoints Kingsway Capital founder and TON Foundation President Manuel Stotz as Executive Chairman, former TON Foundation advisor Veronika Kapustina as CEO, and ex-JPMorgan Onyx executive Sarah Olsen as CFO. Blockchain.com CEO Peter Smith will serve as special advisor.
Cohen & Company Capital Markets acted as lead financial advisor and sole placement agent, with legal counsel from Reed Smith LLP, Perkins Coie LLP, and Morgan Lewis. The securities were offered via private placement exemptions from SEC registration.