Smart Valor initiates delisting process

In February 2022 Smart Valor successfully conducted its oversubscribed Initial Public Offering (IPO) through the issuance of SDRs and a directed cash issue, raising approximately CHF 13 million (SEK 130 million), with the first day of trading on February 10, 2022.

In 2022-23, the crypto industry in the US came under regulatory scrutiny, resulting in lawsuits and fines against leading exchanges and platforms. This period coincided with the collapse of prominent entities like FTX, Celsius, Voyager, Genesis, BlockFi, and others, severely impacting investor trust. This turbulence affected the shares of all publicly listed crypto companies, including Smart Valor.

Smart Valor's Initial Public Offering (IPO) in February 2022 coincided with a series of unfortunate events in the broader stock market and global economy. During that time, the capital market experienced its most severe downturn in the past five decades. The outbreak of the Russia-Ukraine war exacerbated the situation, leading to a global economic downturn.

Smart Valor's share price peaked on 17 February 2022 at SEK 44,795, which corresponds to a company valuation of around CHF 68 million. The share price subsequently fell and, unlike the price of bitcoin for example, has not recovered in recent weeks. The share price is currently just under SEK 0.9. Smart Valor is valued at just CHF 1.1 million. “In the specific context of the local Swedish market, the Company’s SDRs had limited liquidity and constrained trading”, says a company statement. Therefore, Smart Valor has concluded that continuing to offer SDRs for trading on the Swedish market is not in the best interests of founders and shareholders, particularly in terms of enhancing the company's value.

Smart Valor is currently evaluating alternative markets where shares can be traded in the future. Of particular interest are the emerging markets for tokenized securities. However, in the interim period following the delisting of Smart Valor SDRs from Nasdaq First North, shares of Smart Valor will only be available for buy and sell transactions through Over-The-Counter (OTC) operations.