eToro’s SPAC partner to return $250 million to investors

Special purpose acquisition company FinTech Acquisition Corp. V, that had agreed to merge with retail broker eToro, will dissolve and liquidate, as it failed to fulfill any merger deals for taking companies public.

The blank-check company will return the $250 million it collected from investors and close of business on 9 December 2022. Its public listed shares will be deemed cancelled and will represent only the right to receive the redemption amount.

The official press release stated:

The Company’s sponsors have agreed to waive their redemption rights with respect to their outstanding shares of Class B common stock issued prior to the Company’s initial public offering. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless.

FinTech Acquisition Corp. V was set up by well-known financier Betsy Cohen. The SPAC company and eToro announced their proposed merger in March 2021. The estimated implied equity value of the merger was initially at $10.4 billion, but was later taken down to $8.8 billion.

The merger was terminated as the Israeli retail broker and the blank-check company failed to close the deal before the deadline of 30 June. The termination of the deal was mutual and neither party had obligation to pay a termination fee.


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