Michael Edward Novogratz, an ex-hedge fund manager, formerly of the investment firm Fortress Investment Group, in a recent statement on Wednesday, Jan. 2nd 2019, announced purchasing 7.5 million more ordinary shares of Galaxy Digital Holding Ltd., the crypto-focused merchant bank he founded, by investing an additional US$4.8 million.
Novogratz, who also is a serving CEO of the bank, now owns 79.3% of ordinary shares which amounts to 221.2 million ordinary shares. The 7.5 million new shares bought, account for 2.7 percent of those issued and outstanding, amounting C$7.42 million (US$4.8 million).
The bank, as of early Aug. 2018, has been on Canada’s TSX Venture Exchange list, bumming a rocky start. But, markets eventually responded eagerly to Novogratz’ news of increased stake. The bank’s shares reported a 7.8 percent rise to C$1.11 in the morning, showing a positive glimpse after falling over 19 percent over 2018 amid the crypto bear market scenario.
It took 8 months for the bank to be listed on TSX. Thus, lacking the 2 years’ of audited financials required for a US initial public offering (IPO). Novogratz was able to secure a TSX listing for his bank by merging his bank with an already TSX-listed shell company, thus making the move, which is generally termed as a “reverse takeover” route.