TruGolf Holdings, a Nasdaq-listed company, announces completion of acquisition of Canadian company Polymath Research Inc.
TruGolf Holdings, a Nasdaq-listed company, announced on October 9 the completion of its acquisition of Canadian company Polymath Research Inc. Polymath has been involved in the creation of security token categories and developed a layer-1 blockchain for regulated assets called Polymesh. Following the acquisition, Polymath will operate as a wholly-owned subsidiary, while TruGolf continues to retain its golf simulator and E6 platform.
The company has structured the merged entity into two revenue lines: existing golf simulation and software, plus institutional tokenization infrastructure. The announcement stated that banks, asset managers, and issuers are increasingly exploring blockchain applications for physical assets. As of December 31, 2025, Polymath has issued tokenized assets worth over $132 million for more than 65 active issuers, with over 50 ecosystem partners.
The two companies are already working on joint products. TruGolf Links and Polymath are developing an equipment leasing project, with funding raised through tokenized securities, and offering fractional franchise rights to qualified franchisees, targeting Q1 2027. The announcement did not disclose the issuance scale of these two projects, investor qualification details, or whether regulatory filings have been submitted.
The cash related to the transaction comes from warrant exercises. On October 7, TruGolf signed a third amendment, waiver, and exercise agreement, allowing holders to exercise 3,278 shares of Series B preferred stock, with a total par value of $3.278 million, resulting in a net gain of $2.95 million for the company. This preferred stock can be converted into Class A common stock under ownership and Nasdaq restrictions.
Personnel adjustments were also made. Natalie Hirsch, former CFO and interim CEO of Polymath, has been appointed CFO and COO of TruGolf. David Hackett has joined the board. The announcement was issued from Salt Lake City and did not disclose the acquisition price, equity dilution ratio, or whether Polymesh token holders will receive shares of the listed company.
This is not a secondary trading of tokens, but rather a listed company incorporating a tokenized business. The buyer is TruGolf shareholders holding Polymath through a wholly-owned subsidiary, while the seller is the original Polymath equity holders. The event is driven by the delivery announcement and the $2.95 million warrant cash. Beneficiaries include the tokenization team that has gained a Nasdaq-listed entity and the projects planning to issue equipment leasing and franchise fragments in Q1 2027; the pressured party is the shareholders who still value TRUG based on golf simulator revenue, as the new business's $132 million is the issuance stock as of the end of 2025, not confirmed revenue for TruGolf.
The net gain of $2.95 million comes from the preferred stock exercise, not from Polymath's operating cash flow. It is unclear whether the conversion reaches Nasdaq limits, as the announcement left restrictive clauses.
Source: Public Information
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Polymath has been a security token issuance platform since around 2017, later developing its compliance features into a separate layer-1 chain called Polymesh, with the token POLYX. TruGolf is a golf simulator company listed on Nasdaq, primarily focused on simulators and E6 software. The completion of the acquisition on October 9, 2026, turns Polymath into a wholly-owned subsidiary, with Hirsch transitioning from interim CEO of Polymath to CFO and COO of the listed company. This path differs from the name change of Long Island Iced Tea or mining companies going public through shell mergers, as the announcement states the retention of the golf business rather than a replacement of the reporting entity.
The funds are divided into two parts. One part is from the October 7 exercise of Series B preferred stock warrants, totaling 3,278 shares with a par value of $3.278 million, resulting in a net gain of $2.95 million, which can be converted into Class A common stock under ownership and Nasdaq restrictions. The other part is a future product: tokenizing the equipment leasing into securities and fragmenting franchise rights for qualified franchisees by Q1 2027. The $132 million from Polymath as of December 31, 2025, represents the issuance stock from over 65 issuers, not the post-merger revenue. The announcement did not specify the acquisition price or whether POLYX holders will receive TRUG shares.
For comparison, Overstock integrated security tokens into its listed company system through tZERO, and Securitize issued regulated tokens for institutions. TruGolf is currently in the early stages of consolidation: the subsidiary has been delivered, while the leasing and franchise projects are still targeting Q1 2027. Control lies with the board of the listed company and the preferred stock conversion terms, not with the holders of Polymesh tokens.
Essentially, this is a restructuring of the industry chain. The golf simulator sells equipment and software, while the tokenization platform sells issuance and compliance chains. The mechanism is to use one Nasdaq code to incorporate two revenue streams into the same announcement, and then use preferred stock warrants to initially supplement $2.95 million in cash. The issuance stock can demonstrate scale but does not automatically convert into sales for the golf company.
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The completed acquisition is for equity, not for the shares of token holders.
The issuance stock can be included in the announcement, but revenue must wait for confirmation.
The two business lines are consolidated, but the valuation basis is initially split.