eToro barred from going public... for now
eToro, along with partners and fund investors gained from the agreement, will not be able to fully pursue public offerings immediately.
FinTech Acquisition Corp. V (Fintech V) - a special purpose acquisition company focused on financial services - has cancelled its merger agreement with eToro. The social investing network said that the companies were unable to satisfy certain conditions by June 30th, so they could not complete the transaction.
- In a press release from eToro on Tuesday, the company announced that it had failed to meet one of the conditions required for its registration statement. As a result, it has terminated the merger agreement immediately.
- The merger agreement announced in March would have allowed eToro to go public. The firm provides a trading platform for stocks, commodities, ETFs, and cryptocurrencies to over 27 million registered users.
- Fintech V is a blank-check (SPAC) firm that was founded by banking entrepreneur Betsy Cohen. The chairman expressed disappointment over the failed merger agreement, which he blamed on “circumstances outside of either party’s control.”
- Assia, the CEO of eToro, says that although the deal did not work out as planned, the company's core business remains strong.
- "We remain confident in our long-term growth strategy and look forward to the future of eToro," he said.
- Since the termination of the deal was mutual, neither party will need to pay a termination fee to the other.
- When the merger was announced, the estimated value of the combined entity's equity stood at $10.4 billion.
- In November, eToro removed Cardano and Tron from its platform because of regulatory concerns, which disappointed Cardano founder Charles Hoskinson.