Costa Mesa-based Gold.com Inc., a fully-integrated alternative assets platform offering an extensive range of precious metals, numismatic coins and collectibles, entered into a definitive agreement with TPM, S.A. de C.V., known as Tether, whereby Tether is purchasing $150 million of Gold.com’s common shares. Tether is one of the largest known private owners of gold globally and sponsors the largest dollar-backed stablecoin and the largest gold-backed stablecoin in terms of market capitalization as well as the U.S.-regulated stablecoin USAT.
“Tether’s investment in Gold.com validates our strategy to be the vertically integrated leader in physical bullion and to offer the industry’s most comprehensive precious metals platform,” said Greg Roberts, chief executive of Gold.com, in a statement. “The proceeds from this transaction will provide Gold.com with increased funding and flexibility to strengthen our business by further developing our portfolio of category-leading brands. We look forward to Tether’s continued support and to partnering with their team going forward to potentially develop additional innovative and mutually beneficial commercial opportunities.”
Tether has agreed to purchase approximately $125 million worth of common shares at an issue price of $44.50 and will purchase an additional approximately $25 million following receipt of certain regulatory approvals. As a result of Tether’s investment in Gold.com, Tether is entitled to nominate a member to the board of directors.
Gold.com has agreed to invest $20 million of the proceeds raised from the Investment in Tether’s XAU₮ stablecoin.
“This acquisition represents an important step in the evolution of financial markets, where trusted real-world assets and blockchain-based infrastructure increasingly converge,” said Juan Sartori, head of special projects at Tether, in a statement.
Canaccord Genuity served as exclusive financial advisor and sole lead agent to Gold.com, and Herbert Smith Freehills Kramer (US) LLP served as legal counsel to Gold.com. Skadden, Arps, Slate, Meagher & Flom (UK) LLP served as legal counsel to Tether.
Information for this article was sourced from Gold.com.