NextBlock kills plan to go public
Alex Tapscott's NextBlock Global announced late Sunday it is abandoning its plan to go public after the blockchain venture capital company ran into a series of controversies last week.
"As a young company, we have stumbled in our efforts to take our company public and we will work hard to rebuild the trust of those we have disappointed," NextBlock said in its press release.
The negative attention started last Wednesday when Forbes revealed that a NextBlock investor presentation contained false claims. In one version of the presentation, NextBlock boasted it had four high-profile advisors who later told Forbes they didn't sign up to advise the company.
On Friday, the venture capital company suffered a major setback after CIBC pulled out of the offering amid fallout from the Forbes story. And BNN has learned that Canaccord later backed out, too.
The two financial heavyweights were underwriters on the deal that was designed to see NextGlobal go public through a reverse takeover of Venture-listed Nobelium Tech Corp.
NextBlock promoted itself in an investor presentation deck as offering "unique access to the new Internet of value." Proceeds from the go-public transaction, which aimed to raise $100 million, were supposed to go toward acquiring "blockchain related assets."
The company said on Sunday it will reach out to its investors to discuss next steps and that it remains "as confident and excited as ever about the promise of blockchain technology."