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Tony Vejseli, Figure Markets Holdings Inc., and GXD Labs,
LLC (collectively “the Group”) today issued a statement to address recent
developments following a meeting held on October 28 at White & Case’s
Midtown Manhattan offices, where the Group met with the board of directors (the
“Board”) and management team of Ionic Digital, Inc. (the “Company” or “Ionic”).
The Group thanked White & Case for hosting the discussion but noted a need
for clarification following the Company’s summary of the meeting in a press
release, which they believe misrepresented several key points.
In response to Ionic’s statement regarding its affirmation
of “strong momentum” and its “laser-focus” on implementing its strategic
initiatives, the Group raised concerns over the Board’s apparent lack of
knowledge of core operating metrics. They highlighted that the Board appeared
unprepared to discuss any aspects of its financial or operational performance,
including by answering any of Mr. Vejseli’s questions as described in his post
on X, leading to questions about the Company’s competitive position and
valuation. The Group also expressed skepticism about Ionic’s ability to
complete its audit, initially expected in early 2024 and now anticipated by Q1
2025 according to the Company, within the announced timeframe due to the
apparent lack of available financial information, including the Company’s
EBITDA and expenses.
The Group indicated that alternative liquidity options for
shareholders were discussed, yet they felt these options had not been fully
explored or evaluated by the Board. The Group also raised concerns over Ionic’s
contract with Hut 8, noting that, although it had presented a proposed
solution, no alternative path forward was discussed by the Board or management.
During the meeting, the Group outlined a proposed plan for
refreshment of the Board, specifically suggesting the resignation of three
current board members—Scott Duffy, Tom DiFiore, and Emmanuel Aidoo – to be
replaced by three new, independent directors with the requisite experience and
skill sets. The proposal, supported by a detailed presentation, emphasized the
need for strategic and experienced leadership to better align the company’s
actions with shareholder interests.
Shareholders are encouraged to review the proposal and
consider supporting a special meeting to vote on board changes.
About Figure Markets
Figure Markets (www.figuremarkets.com) is democratizing
finance through blockchain. We’re building the exchange for everything – a
decentralized custody marketplace for crypto, stocks, bonds, credit and more.
We’re bringing best-in-class leverage, margining, and liquidity to our
exchange, while offering our members extensive borrowing options and unique
investment opportunities. Figure Markets puts our members in control of their
assets and data, disintermediating legacy brokers, exchanges and lenders.
Figure Markets is backed by leading venture
capital firms and strategic partners, including Jump Crypto, Pantera,
Distributed Global, Faction Lightspeed, NewForm Capital and CMT Digital. Figure
Markets was founded by a seasoned team of entrepreneurs and operators from
TradFi, fintech, and DeFi, including Mike Cagney and June Ou.