Liquid Mercury said its subsidiary ACQUA1 completed the initial closing of its MERC exchange offering on September 1, 2026, issuing 56,323,000 non-voting Class B units to verified accredited investors. The units were exchanged at an initial rate of 10 MERC per unit.

Under the offering terms, ACQUA1 then burned all 563,230,000 MERC received in that closing on September 2 by transferring the tokens to a dead address. The company said its operating agreement requires 100% of MERC collected at each closing to be burned within five business days and bars ACQUA1 from transferring, trading, lending, staking, pledging, or otherwise using those tokens.

What ACQUA1 does

ACQUA1 is a Liquid Mercury subsidiary that runs the company’s Lab Company program. According to the announcement, the program licenses Liquid Mercury technology to businesses that are primarily tokenizing real-world assets, with ACQUA1 receiving fees and a minority equity stake in return.

Liquid Mercury remains ACQUA1’s majority holder and manager. In the announcement, Chief Executive and founder Tony Saliba said companies had approached Liquid Mercury over the past 18 months looking for ways to tokenize assets without having to build the required infrastructure from scratch. He said ACQUA1 token holders gain exposure to a business model tied to equity participation and fee income from companies in the program.

Structure of the initial closing

The company said the securities sold in the offering are non-voting Class B units of ACQUA1, LLC and were offered under Rule 506(c) of Regulation D. Participation in the initial closing was limited to verified accredited investors.

Liquid Mercury said the units are evidenced on-chain by ACQUA1-C tokens, which convert one-for-one into ACQUA1 tokens upon issuance. The initial conversion rate was set at 10 MERC for each unit, resulting in 56,323,000 units issued in exchange for 563,230,000 MERC.

Token burn mechanics and supply note

The announcement emphasized that the MERC contract does not include a native burn function. Instead, tokens are removed from circulation by being sent to a dead address, which is how ACQUA1 carried out the September 2 burn.

As of the publication date, the company said MERC supply outstanding, excluding the dead address, stood at 5,436,770,000 tokens. The release also referenced on-chain records for the burn transaction and the ACQUA1-C contract.

What comes next

Liquid Mercury said additional closings are planned on or about October 30 and December 31, 2026, although it added that ACQUA1 may skip a closing or terminate the offering at its discretion. The company also said the conversion rate in later closings may differ from the initial 10 MERC per unit.

The release included a standard investor notice stating that the press announcement is not an offer to sell securities and that the units and related tokens are restricted securities that may remain illiquid indefinitely. It also said statements about future revenues, valuations, portfolio performance, and later closings are forward-looking and subject to risks and uncertainties.

Source: dailyhodl.com