Evernorth Holdings, a treasury platform specializing in XRP, has taken key steps toward launching its product on NASDAQ. The company adjusted the terms of its XRP-backed share allocation before its public market debut, establishing a revised agreement with existing stakeholders.
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Evernorth intends to become a public company through a business combination with Armada Acquisition Corp. II. Company representatives said that 95% of current enterprise investors have approved the new terms, clearing a significant hurdle ahead of the anticipated listing.
When the original allocations were set, XRP was trading at $2.35. Currently, the price stands at approximately $1. The amended agreement shifts away from relying on the old price point. Instead, it uses XRP’s volume-weighted average price closer to the closing date of the transaction to determine share allocation. This adjustment is designed to reflect more accurately the present market value of the cryptocurrency.
Share issuance and investor alignment
Private-placement investors have subscribed to primary shares at $10 per share. Under the updated structure, if XRP remains below $2.35 by the time of closing, Evernorth is not required to issue additional shares. This approach means that each $10 share will represent more XRP, necessitating an increase in the amount of XRP the treasury holds to back each share for its clients.
Supporters of Evernorth include major industry players such as Ripple, SBI Group, Pantera Capital, Kraken, Arrington Capital, and GSR. This backing provides the company with a strong foundation and increases credibility as it enters public markets.
Mini dictionary: Armada Acquisition Corp. II is a special purpose acquisition company (SPAC) that facilitates companies going public through mergers rather than traditional IPOs.
Evernorth’s primary objective is to contribute to the wider XRP ecosystem, rather than solely capitalizing on short-term price movements. Founder and CEO Asheesh Birla expressed that linking share count to XRP’s value at closing better aligns the interests of both the company and its investors.
Tying the share count to XRP’s value at closing is the right thing to do for Evernorth and our investors. We’re preserving alignment among investors while supporting our long-term strategy of building institutional access to the XRP ecosystem.
According to Birla, issuing fewer shares means that the company’s net asset value will be spread across a smaller share base, increasing the value that each individual share represents.
| Original Terms | Amended Terms |
|---|---|
| Share allocation based on XRP at $2.35 | Share allocation based on XRP’s volume-weighted average at closing |
| Potential for more shares to be issued if XRP price dropped | No extra shares if XRP remains below $2.35 |
| Fixed number of XRP backing per share | Dynamic adjustment, more XRP backing per $10 share if price stays low |
Evernorth’s entry onto NASDAQ with these revised terms marks a significant moment for the XRP ecosystem, potentially expanding institutional access via new avenues tailored specifically for XRP.
