ETORO VALUATION HALVED AS SPAC MERGER DEADLINE EXPIRES

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The Israeli broker apparently canceled the deal with Betsy Cohen-backed blank-check firm.

eToro will “share an update in the coming days,” according to a company spokesperson, who spoke to The Information.

Even after lowering its SPAC valuation from the earlier planned $10.4 billion to $8.8 billion, eToro abandoned its plans to go public because the market conditions changed and SPACs face more headwind. As if that wasn't bad enough, the social investment work is said to be in talks to close a $1 billion private funding round, but at a valuation of $5-6 billion.

It was originally planned to go public through a blank-check company in Q3 2021. As a result, the direct-listing deadline has been pushed back until the fourth quarter, as the SPAC boom has already begun to fade.

Reverse merger deal with US SPAC Fintech Acquisition Corp, the black check company backed by Betsy Cohen that is taking it public, was pushed back on a last-ditch effort by eToro. Specifically, the deal deadline was pushed back from December 31, 2021 to June 30, 2022, despite the fact that both parties said they wanted to close the deal before then.

eToro's registration statement on Form F-4 has not been effective despite the parties' 'best efforts,' according to the original merger agreement.

eToro lowered its pre-money valuation estimate from $9.301 billion to $7.906 billion, calling it a “strategic revision of the transaction terms.” EToro was valued at approximately $8.8 billion in the post-money equity market.

eToro shareholders also received a one-for-one reduction in the number of price adjustment rights that correspond to the $17.50 price trigger.

This resulted in a lack of interest in the SPAC's share price, which was lower than when eToro announced its plans to go public. Stock was trading at $9.85 on June 29, a third of its March high of $15.29, according to data from the New York Stock Exchange (NYSE).

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