FinTech Acquisition To Pay Investors $250 Million
FinTech Acquisition Corp. v, commonly known for effecting a merger and capital stock exchange is currently in the liquidation state, close to dissolving after the deals it closed with several companies failed to become concrete. The firm is now set to refund the $250 million it collected from the investors.
According to the announcement made on Friday, the company will be closing its doors on 9, December 2022 unless redeemed. Its publicly listed shares will be considered canceled. The cancellation implies that the company will only stand the right to receive the redemption amount.
The founder of Jefferson Bank and The Bancorp, Betsy Cohen, is the major financer of FinTech Acquisition Corp. V.
“The Company’s sponsors have agreed to waive their redemption rights concerning their outstanding shares of Class B common stock issued before the Company’s initial public offering. There will be no redemption rights or liquidating distributions concerning the Company’s warrants, which will expire worthless,” the official press release stated.
Merge Gone Wrong
The blank check company, FinTech Acquisition Corp. v, signed a deal with eToro in March 2021 with intentions of taking the Israeli broker on an American stock market. The deal was sealed initially at $10.4 billion, but the figures later reduced to $8.8 billion, a 15 percent decrease.
Nevertheless, the deal signed between the two companies crashed after failing to meet the agreement scheduled by the end of June. Some of the conditions that failed include those relating to the company’s registration statement.
However, the termination deal between the two companies was mutual, implying that neither of the companies will be subjected to paying the termination fee.
eToro one of the renowned exchange earned its big name through copy trading services. The broker added its credit to its platform by offering cryptocurrency services. eToro raised its client base in 2021 when the number of clients doubled to 2.4 million.
The broker is now aiming to expand its presence globally, highly aiming at America and African countries.
The broker is now strengthening its offerings with the addition of regulatory licenses and acquisitions.
“We wish Betsy Cohen and her team all the best with their future endeavors,” an eToro spokesperson told Finance Magnates.
SPAC, however, did not come clear on its state with other companies they have merged
