Exclusive: eToro SPAC partner folds, to return $250M investor funds
FNG Exclusive… FNG has learned from regulatory filings made with the U.S. Securities and Exchange Commission that special purpose acquisition company (or “SPAC”) FinTech Acquisition Corp. V (NASDAQ:FTCV) will dissolve and liquidate, and return (virtually) all of the $250 million in funds it took in to investors.
FinTech Acquisition Corp. V, set up by legendary financier and founder of Jefferson Bank and The Bancorp, Betsy Cohen, had agreed in March 2021 to merge with Retail FX and CFDs broker eToro, in a deal that would have brought eToro public at a valuation of more than $10 billion.
However the transaction took longer than expected to close due (mainly) to a lengthy regulatory approval process. And, while the combination was eventually renegotiated with eToro’s value reduced to $8.8 billion toward the end of 2021, it eventually fell apart with the parties announcing in early July 2022 that they were going to terminate the merger.
While we understand that FinTech V searched for a new merger partner following the eToro deal breakup it was unable to do so in time (i.e. before the end of 2022), within the time period required by its Certificate of Incorporation. And so, the company intends to dissolve and liquidate effective as of the close of business on December 9, 2022, with a per-share redemption price of approximately $10.08 returned to the SPAC investors. The company anticipates that its public shares, as well as its publicly traded units and warrants, will cease trading as of the close of business on December 8, 2022.
On its side eToro has also seen some collateral damage from the breakup of the SPAC deal, which would have brought several hundred million dollars of fresh capital into eToro. Soon after the SPAC deal was cancelled eToro announced layoffs amounting to about 6% of its workforce. And recently we reported that eToro Germany saw the departure of its three most senior officers, with two of the three heading to crypto exchange Binance.