eToro Might Push SPAC Merger Deadline, Again

The latest report by Calcalist states that eToro might push its SPAC merger deadline once again. The broker previously announced closing the deal at Q3 end but failed to do so. The Israel-based firm has confirmed its merger with FinTech Acquisition Corporation.

However, the deal does not appear to be closing as expected. The deal, valued to be worth 10.3 billion dollars, will most likely not take place in 2021. The report by Calcalist stated that the multi-asset broker has no shareholders in sight. Thus, it is safe to state that the merger won’t take place in 2021.

Ever since the news of the merger came out, investors have been looking for an in-depth eToro review to assess its operations. Despite the grim evaluation presented by the report, the merger is not falling apart. The SPAC investors still possess the right to vote and proceed with the merger or withdraw the investment.

However, if the broker misses the deadline, it will face issues with PIPE (public equity) investors. The investors, including multiple big names, have already injected 650 million dollars into the merger. Some of the investors are:

  • Third Point LLC
  • SoftBank’s Vision Fund 2
  • Wellington Management
  • Fidelity Management & Research Company LLC

The broker stated that it is still in the process of being listed as a public company with a business merger with FinTech V. eToro is working with several relevant players to conclude the process as soon as possible. The eToro team is delighted about the upcoming merger, stated eToro in a brief interaction with Finance Magnates.

The news regarding the merger has not deflated eToro’s market position as it noted a 66% increase in total commissions in Q3. Moreover, its United Kingdom group also amassed a 717% revenue growth this year.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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