Banq, a platform for the first issuance of securities managed by Cambria Capital, a regulated broker-dealer, has filed for chapter, in accordance with many studies.
Chapter 11 Dockets distributed the information through Twitter.
Crypto software program firm Banq filed for chapter safety at the moment in Nevada https://t.co/ckmt6V6AMl pic.twitter.com/4EmKzowj24
— Randall G. Reese (@Chapter11Cases) June 13, 2023
Whereas a number of studies claimed that Banq was a subsidiary of Prime Belief, this isn’t the case. In response to a person with data on the subject, Prime Belief held lower than a 3% stake in Banq.
Banq’s declare to notoriety was its Reg A+ providing that noticed MYOMO elevate capital after which commerce on the NYSE. Underneath the Reg A+ exemption, an issuer could determine to commerce shares on an alternate or market instantly.
Banq sought to determine a digital platform to facilitate capital formation after which buying and selling on secondary markets. In response to its web site, Banq facilitated 9 separate securities choices utilizing Reg A+ inclusive of MYOMO. Apparently, no choices have been listed on the platform prior to now a number of years.
On the identical time, Banq centered on the rising digital safety market by incorporating blockchain expertise.
As for Prime Belief, the corporate is within the midst of a sale to BitGO, which has signed a time period sheet to accumulate 100% of the fairness within the firm.
Few particulars can be found as to why Prime Belief seems to have been compelled to pursue a last-minute sale which continues to be within the works. At one time, Prime Belief was the most well liked entry within the non-public securities market, enabled by on-line capital formation. When the crypto sector emerged, Prime Belief shortly moved to make the most of this fast-growing business whereas exiting extra conventional belongings. Up to now 12 months, the crypto sector has floundered, which can have impacted the efficiency of Prime Belief.
Some business insiders fear that crypto business optics are poised to worsen if extra companies go bust or rush to discover a takeover associate.
