At an extraordinary shareholder meeting in New York yesterday, all resolutions put forward by Columbus Circle Capital, including a merger with Anthony Pompliano’s ProCap BTC, were approved. Mr Pompliano is a cryptocurrency promoter.
Columbus Circle Capital, where Mr Quin is CEO and chairman, raised $250m in gross proceeds when it floated in May this year on the Nasdaq, with Mr Quin retaining a 10pc stake in the business through founder shares.
In June, Columbus Circle Capital confirmed it had signed a deal with Mr Pompliano, where his company, ProCap BTC, a bitcoin-focused financial services firm, would combine with the Spac to secure a stock-market listing for a new entity called ProCap Financial.
On Monday, shares in Quin’s Columbus Circle Capital plunged 40pc
In advance of the planned merger, ProCap BTC bought hundreds of millions of dollars of bitcoin after raising $775m from investors. The average price paid by ProCap BTC was above $103,000 for each bitcoin.
However, the price of bitcoin later plunged amid a rout in the cryptocurrency market. It now stands at about $92,300, although it has advanced in recent days.
Shares in Columbus Circle Capital also plunged this week in advance of the shareholder meeting in New York. On Monday, they sank more than 40pc and declined by more than 5pc on Tuesday. At the opening bell on Wednesday, they had fallen more than 11pc.
Last month, Glazer Capital, headed by the so-called ‘Spac king’ Paul Glazer, revealed it has a 7.8pc stake in Columbus Circle Capital. Glazer Capital said it had invested in the business because it believed it to be “an attractive investment opportunity”.
However, it said it didn’t believe that the proposed structure of the merger between Columbus Circle Capital and ProCap BTC is in the interests of shareholders in Columbus Circle. It intended to vote against it in its current form.
Glazer Capital had said it was open to “engaging constructively” with Columbus Circle Capital and ProCap BTC, “to explore potential modifications to the proposed business combination or related terms that could make the transaction more attractive and accretive for all stakeholders”.
There were no questions from the floor during the shareholder meeting.
After polling, the company noted that the resolutions, including that to effect the merger with ProCap BTC, had been approved by shareholders in Columbus Circle Capital.
Columbus Circle Capital is backed by New York boutique investment bank Cohen & Company Capital Markets.
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