ThinkMarkets IPO scrapped as SPAC merger falls through

abdelaziz Fathi

Canada-listed blank check company, FG Acquisition Corp., and Melbourne-based broker ThinkMarkets have jointly decided to call off their previously announced merger plan.

Following this mutual termination, FG Corp said it is actively exploring other potential opportunities to complete potential acquisitions. According to the timeline set by the its shareholders during a special meeting held in June, the company has until July 5, 2024, to finalize such a transaction.

“We wish ThinkMarkets well in their future endeavors. With our robust merchant banking activities in both Canada and the United States, we look forward to pursuing a new target for the Corporation in the days and weeks ahead,” stated Kyle Cerminara, Chair of the Corporation’s board, and Larry Swets, Chief Executive Officer.

“We would like to thank the team at FG for the opportunity provided. We are looking forward to 2024 and expanding on our long term growth strategy and objectives,” stated Nauman Anees, CEO and Co-Founder of ThinkMarkets.

The development marks a shift in strategy for both entities, as they move forward independently, pursuing their respective business goals and growth strategies. It comes barely a month after FG Acquisition Corp. (TSX: FGAA.U) (TSX: FGAA.WT.U) withdrew its preliminary prospectus for the planned merger with ThinkMarkets, citing a delay in filing the final prospectus within the specified timeframe.

The company stated that, while both FG Acquisition Corp. and Think Financial are actively working towards finalizing the merger, the final prospectus cannot be submitted within 180 days from the original filing date.

The merger would have valued ThinkMarkets, which generated $62 million in revenue in 2022, at $160 million on a pre-money basis.

The anticipated completion of the transaction was slated for the latter half of 2023 and the merged entity was set to be listed on the Toronto Stock Exchange.

ThinkMarkets made headlines earlier last year when it raised $30 million in fresh capital, provided by Mars Growth, a Liquidity Group and MUFG joint venture fund. Its UK business also launched a new prime brokerage unit under the brand Liquidity.net.

ThinkMarkets is a multi-licensed online forex brokerage firm, authorized and regulated by the UK Financial Conduct Authority (FCA) and the Australian ‎Securities and Investments Commission (ASIC). The firm expanded its global footprint through its licensed South African firm. It also acquired the Japanese FX firm, Japan Affiliate, in a move that allows ThinkMarkets to offer its service in the Asian country.

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