Sat, January 28, 2023

eToro May Push the SPAC Merger Deadline Again.

After the merger, it aims for a valuation of $10.3 billion.

The merger of eToro and the American blank-check firm may delay, as reported on Monday. If this occurs, it could lead to eToro’s potential failure and/or dissolution in public markets due to a lack of investor interest following Calcalist’s report.”

eToro confirmed its pending merger with FinTech Acquisition Corp. V, a SPAC sponsored by prominent businesswoman Betsy Cohen. The transaction will result in a value of $10.3 billion for the combined entity when completed.

The multi-asset broker has already moved the closure date from the end of the third quarter of 2021 to the fourth quarter of 2021. According to a news story, though there are just a few weeks left before the closure deadline is up, “no shareholders’ meetings [are] in sight [and] it is apparent that the merger will not happen in 2021.”

However, that does not guarantee the merger agreement will collapse; SPAC investors have the option of allowing the merger to proceed or returning their funds.

PIPE Investors

However, if the broker misses the deadline, they may have difficulties with private investment in public equities (PIPE) investors who committed to invest $650 million. Third Point LLC, SoftBank’s Vision Fund 2, Wellington Management, and Fidelity Management & Research Company LLC, are among the institutional investors.

However, eToro may persuade the investors to renew their investment pledges once more.

eToro is working on establishing a public corporation through a FinTech V merger. We are engaged in discussions with all relevant parties to complete this as soon as possible. This next chapter in the eToro story is particularly thrilling for us,” eToro added in a statement.

Meanwhile, eToro’s performance has remained strong, with total commissions rising 66% in the third quarter of 2021 to $222 million. Furthermore, in fiscal 2020, the UK division of the organization grew revenue by 717%.

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