eToro may miss its 2021 SPAC merger deadline as there remain no shareholder meetings scheduled to finalise the deal. The company is expected to be worth a cool $10.4 billion following the merger so many participants and commentators alike are keen to see the deal closed.
Another Missed Deadline
eToro’s attempt at a public listing is at risk again, having already pushed the deadline from the third quarter of 2021 to the fourth quarter. But whilst it’s been reported that there aren’t any shareholder meetings in the diary for the next few weeks, SPAC investors can still vote to move forward or withdraw investment returns.
If the deadline is missed, the popular online broker may encounter problems with the private investment in public equity (PIPE) investors, who planned to pump $650 million into the deal. Among the institutional investors signed up to the deal are SoftBank’s Vision Fund 2, Wellington Management, Third Point LLC, and Fidelity Management & Research Company LLC. Of course, eToro may persuade investors to extend their investment commitment once again.
eToro commented: “eToro is in the process of becoming a public company via a business combination with FinTech V. We are working with all relevant parties to conclude this as soon as possible. We are incredibly excited about this next chapter in the eToro story.”
Israel-based eToro confirmed news of the merger with Fintech Acquisition Corp. V, an established SPAC with the backing of renowned business figure, Betsy Cohen, earlier this year. The American blank-check company will allow eToro to secure a coveted public listing on the NASDAQ.
eToro Performance Remains Strong
Despite uncertainty around the merger, eToro is posting impressive performance metrics. The brokerage has seen a 66% increase in total commissions during the third quarter of 2021, up to a value of $222 million. The UK division also reported a 717% jump in its 2020 revenue figures.
eToro is an award-winning trading broker regulated by the Cyprus Securities and Exchange Commission (CySEC). Clients can trade dozens of currency pairs, more than 50 ETFs, a dozen indices, a handful of commodities, plus close to 1,000 equities. The brokerage also offers a market-leading copy trading platform where users can mirror the positions of established investors.
New traders can get started with a $200 minimum deposit and can make payment with a selection of user-friendly options, including PayPal, Skrill and Yandex. The platform is also popular with beginners due to the responsive customer support provided via live chat, email and telephone.
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