Issuance Inc., a Los Angeles-based capital formation platform, announced this week that it had completed its acquisition of Los Angeles-based investor marketing firm CrowdFundX. The transaction closed on February 1, 2019. Issuance inherits CrowdFundX’s clients and employees, as well its network of investors and its relationships with around 200 digital asset funds. Acquisition terms were not disclosed.
Darren Marble, CEO of both Issuance and CrowdFundX, said, “Our mission at Issuance is to usher in a new era of efficient capital raising, one which blends blockchain technology with traditional financial services and solutions … We expect the first Reg A+ DSOs (digital securities offerings) to be qualified by the SEC in short order. The acquisition of CrowdFundX positions Issuance to capture increasing market share from Reg A+ DSO issuers and deliver success for our clients while we develop our platform.”
The news follows Issuance’s announcement in November that it had executed a Letter of Intent to acquire CrowdFundX. At the time, Marble opined, “Digital securities are the next mega-trend in capital markets. Unlike utility tokens, digital securities provide investors with real ownership interests in the underlying asset or company. Digital securities offerings are a compliant alternative to ICOs, and offer investors liquidity, 24/7 trading, and access to a global pool of investor capital.”
Marble said in Securities.io’s December 2018 interview with him, “Issuance at its core is a technology company, while CfX is a services company with notable industry clients and established revenue streams. As such, CfX is a natural acquisition for Issuance.” Marble noted in the interview with us that, upon completion of the acquisition that just closed this week, the “CrowdFundX/CfX” brand would be sunsetted, with Issuance continuing as the enduring brand.
Marble told The Los Angeles Business Journal last week that Issuance is negotiating a deal to appear on a new reality TV series called “Going Public,” following companies filing for IPOs.
More About CrowdFundX
CrowdFundX specializes in direct-to-investor retail marketing of Reg A+ exemption IPOs and digital securities. It provides resources and tools to execute compliant offerings to institutional and retail investors.
CrowdfundX earns money predominantly from fees for running IPO marketing campaigns for companies seeking listings on public stock exchanges. CrowdfundX charges $150,000 to $250,000 plus some stock for contracts that run four to five months. In 2018, CrowdfundX launched a digital securities offering marketing service to meet increasing market interest, with clients including tZERO and KODAKOne. CrowdfundX’s more traditional clients include Santa Monica-based solar tech company Rayton Solar Inc. and Beverly Hills-based restaurant franchising company Fat Brands Inc.