Cryptocurrency firm Tron (TRON) plans to go public through a reverse merger with a toy company.
Tron said in a news release that it plans to combine with SRM Entertainment (SRM), a Nasdaq-listed company that makes toys based on licensing deals it has with Walt Disney Co. (DIS) and SeaWorld, among others.
Tron is a blockchain network that’s considered a rival to the Solana (SOL) network. It claims to offer low transaction fees and the ability to process a large number of transactions per second.
Under terms of the deal, SRM will raise $100 million U.S. from a private investor to buy TRON tokens and will issue preferred shares and warrants that value the deal at $210 million U.S.
Once finalized, SRM Entertainment will rebrand as Tron Inc., with Tron founder Justin Sun joining the new company as an advisor.
Shares of SRM rocketed 460% higher after the reverse merger was announced, taking the share price to $9.19 U.S.
Justin Sun was previously charged with securities fraud by the U.S. Securities and Exchange Commission (SEC).
However, Sun is reportedly in the process of exploring a resolution to the civil fraud case with the SEC.
Sun has also been a big investor in U.S. President Donald Trump’s meme coin and the Trump family’s cryptocurrency bank called “World Liberty Financial.”
Media reports say Sun is the top holder of the Trump meme coin, having invested $97 million U.S. in the digital token.
The reverse merger of SRM Entertainment and Tron is being arranged by Dominari Securities, a boutique investment bank with ties to the Trump family.
President Trump’s two sons, Donald Trump Jr. and Eric Trump, currently sit on Dominari Holdings’ advisory board.
The TRON token is presently worth $0.28 U.S., having risen 9% this year.
