Arxnocum to be acquired by Ledn

Arxnovum To Be Acquired By Ledn

Arxnovum To Be Acquired By Ledn 2208 1099

TORONTO, Arxnovum Investments Inc. (“Arxnovum”), a regulated Canadian digital asset investment manager is pleased to announce that it has reached an agreement to be acquired by Ledn Inc. (“Ledn”), a global financial services provider for digital assets. The proposed acquisition will allow Arxnovum’s fully-registered business to operate as an independent business unit under Ledn, enabling Ledn to offer digital asset investment products to its accredited client base both in Canada and globally. The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approval. 

“This transaction strengthens our core mission of bringing digital asset investment products to accredited investors in Canada.”

Shaun Cumby
Amp token illustration

Crypto token AMP deemed a security by the SEC

Crypto token AMP deemed a security by the SEC 1024 573

Constituent of Arxnovum DeFi Index Fund to be removed

Late last month the Securities and Exchange Commission (SEC) declared that AMP, along with 8 other crypto tokens, were potentially a security instead of a crypto asset. AMP has been a constituent in the Arxnovum DeFi Index Fund since its inception. 

In a 62 page complaint the SEC states that “a digital token or crypto asset is a crypto asset security if it meets the definition of a security, which the Securities Act defines to include “investment contract,” i.e., if it constitutes an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.”

The complaint then goes on to outline how AMP, or its predecessor Flexacoin, meets the definition of a security. See pages 23-28 or the complaint for a complete review of the SEC’s position. 

As a result of the SEC complaint, prominent crypto exchange Binance.US has announced on Monday that they will be delisting AMP from its platform.  Of those nine tokens, only Amp (AMP) is listed on the Binance.US platform.

Arxnovum Investments is an investment manager that is dedicated to bringing you the best of the digital asset investing aligned with responsible regulatory oversight.  The construction of all of our investment strategies includes well defined rules to either exclude constituents from the initial screen or remove constituents that are included in the index if there exists Regulatory or legal actions that cast doubt as to whether the asset in question is indeed a crypto asset.  

Thus, we take the SEC’s allegations about AMP seriously and have elected to remove the constituent from the Fund.  The active decision to remove AMP and its 4.03% weight (as at August 3, 2022) from the Arxnovum DeFi Index Fund in advance of the removal from the underlying Index means that the fund will have a small amount of tracking error. We expect the CF Benchmarks to make an announcement on the status of AMP in the index in the coming weeks. 

Please contact us if you have any questions or would like to discuss further.

The products and services offered by Arxnovum are available to qualified investors in certain provinces and territories of Canada. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
All investments contain risk and may lose value. Investing in the cryptocurrency market is subject to risks.  Cryptocurrency, often referred to as “virtual currency” or “digital currency”, operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. Cryptocurrency operates without the oversight of a central authority or the banks and is not backed by any government. Even indirectly, cryptocurrencies such as bitcoin may experience high volatility, and related investment vehicles may be affected by such volatility. Cryptocurrency is not legal tender. Federal, state, provincial, territorial or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in North America is still developing. Cryptocurrency trading platforms may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware, which could have an adverse impact on the net asset value per unit of the Fund. Please consult the Funds Term Sheet for a complete list of risks.
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