eToro Abandons Stock Market Deal as Merger with SPAC Falls Through
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eToro Abandons Stock Market Deal as Merger with SPAC Falls Through

5 месяцев назад

"eToro's underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability," the company says.

eToro Abandons Stock Market Deal as Merger with SPAC Falls Through

eToro is abandoning a planned debut on the stock market.

The exchange was due to merge with a special purpose acquisition company — otherwise known as a SPAC — called FinTech Acquisition Corp. V.

But in an announcement on Tuesday, both businesses announced they had mutually agreed to terminate the planned merger.

Certain closing conditions were due to be satisfied by a deadline of June 30 this year, but the deadline was missed "despite the parties' best efforts."

FinTech V's chairman Betsy Cohen said she was "disappointed" that the deal couldn't go ahead — and said this was because of factors that were outside of their control. Wishing the exchange continued success, she added:

"eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum."

And eToro's co-founder and CEO, Yoni Assia, remained upbeat — and continued to express conference in his company's long-term growth strategy.

"While this may not be the outcome that we hoped for when we started this process, eToro's underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability."

Assia also revealed that eToro had 2.7 million funded accounts in the second quarter of 2022 — a 12% increase compared with the same period a year earlier.

Neither eToro nor FinTech V will need to pay a termination fee as a result of the merger agreement being abandoned.

All of this comes as publicly listed crypto companies continue to take a battering on the stock market.

Coinbase's share price is currently trading at $48.15 — a 79.5% fall compared with this time a year ago.

MicroStrategy has also been hit hard, with its stock plummeting by 73.7% over the past 12 months.

A number of crypto exchanges have made layoffs as a sharp reduction in trading volumes hurts their bottom line.

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