eToro SPAC partner, FinTech Acquisition Corp. V, is going to close its business on 9 December and return the $250 million it collected from investors.

Due to the failure to fulfill the merger deals with retail broker eToro, special purpose acquisition company FinTech Acquisition Corp. V will be de-listed and liquidated.

This causes the blank-check company which will close its business on December 9, 2022, must return funds from investors of $250 million. In addition, its publicly listed shares will be deemed canceled and will represent only the right to receive the redemption amount.

The official press release stated that the sponsors of the company have agreed to waive their right of redemption in respect of their outstanding shares of Class B common stock issued prior to the eToro's initial public offering. There will be no redemption or liquidation distribution rights in respect of the company's warrants, which will expire worthlessly.

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FinTech Acquisition Corp. V was set up by a high-profile financier Betsy Cohen, and eToro announced their planned merger in March 2021 which was estimated to have an implied equity value of $10.4 billion, but later reduced to $8.8 billion.

In other news, prior to the June 30 deadline, the Israeli retail broker and FinTech Acquisition Corp. V had failed to close the deal resulting in the merger being halted. On the other hand, the termination of the agreement was mutual so neither party had an obligation to pay a termination fee.