Canna-Global, New Quantum Holdings enter business combination agreement

Canna-Global Acquisition announced the signing of a definitive Bid Implementation and Business Acquisition Agreement with Sydney-based New Quantum Holdings, a provider of cutting-edge wealth management all-in-one Fintech as a Service, that will result in New Quantum becoming a wholly-owned subsidiary of Canna Global, which is expected to be listed on the Nasdaq Global Market under the ticker symbol “NQH.” The business combination transaction reflects an estimated proforma enterprise value of New Quantum at US$800 million and follows New Quantum’s recent acquisition of a majority interest in Morrison Securities from the ASX-listed Sequoia Financial Group for $A40.5 million. New Quantum intends to add technology solutions to the Morrison Securities marketplace to enhance the user experience. The combined entities have, in addition to a leading technology platform, AUD $20 billion of committed funds under management, and a qualified additional pipeline of AUD $80 billion. FaaS technology is a business model that enables companies to outsource financial technology services to a third-party provider. This model provides companies with a more flexible and cost-effective way to access fintech services and improve their financial operations. New Quantum’s technology manages investment portfolios efficiently for the financial services industry. In connection with the proposed transaction, Canna-Global intends to file relevant materials with the United States Securities and Exchange Commission including a registration statement on Form S-4, which will include a proxy statement/prospectus, and other documents regarding the proposed transaction, which is expected to close by the fourth quarter of 2023. The completion of the Bid Implementation also requires approval from the Australian Securities and Investments Commission, which the parties hope to finalize in July 2023. Upon the closing of the transaction, New Quantum will continue to be led by its CEO, Mr Jong Chung, an experienced senior corporate executive has been operating companies for more than 25 years. He has experience across a variety of industries and a wealth of knowledge of accounting and wealth management.