Kim Dotcom's Mega Eyes Backdoor Toward Going Public
Dotcom buys a company so as to get on the New Zealand Stock Exchange.
Kim Dotcom's Mega storage company has announced a plan to be listed on the New Zealand stock exchange.
On its blog, Mega says it has entered into a conditional agreement to acquire TRS Investments Limited. TRS is already listed on the New Zealand exchange and will essentially become a shell company for Dotcom's. The plan is for a 148-to-1 reverse stock split and then the issuance of 700 million shares to Mega. The IPO endeavor comes about a year after Mega hired its first CFO.
Recently in the news for briefly hosting the controversial torrent-enabled Netflix-style streaming app Popcorn Time, Mega looks to take advantage of current investment mania around cloud storage. Mega's announcement comes on the same day that a rival, Box, filed documents with the SEC for its own IPO set to raise up to $250 million.
Dotcom is still awaiting word on whether he will be extradited to the United States to face criminal charges of copyright infringement and racketeering.
Late last week, he lost an appeal at the New Zealand Supreme Court when justices there denied his legal team's demand for full access to the U.S. government's evidence against him.
"Being defeated is often a temporary condition," Dotcom later tweeted. "Giving up is what makes it permanent."
Dotcom is also pursuing claims against the local government for spying on him in the run-up to the infamous raid upon his mansion. He demands documents there too, leading a lawyer for the New Zealand government to warn the judge that anything obtained could be published on social media.