In May, FG Acquisition and ThinkMarkets announced plans to merge in a deal that would take ThinkMarkets public at a valuation of $160 million. FG Acquisition's shareholders later approved the merger with ThinkMarkets.
The deal was designed to result in FG's public Class A shareholders owning 43.3% of the combined company, while ThinkMarkets shareholders would receive 53.4%. The SPAC sponsors would receive the remaining 3.3%.
This has now changed, and FG Acquisition is returning money to shareholders. All Class A public shareholders of FG's Special Purpose Acquisition Company (SPAC) have decided to return their shares to the company and buy back their shares for cash.
Of the 11.5 million shares, 11,398,742 of FG's Class A shares were returned to the company by shareholders. Thus, FG returned $116.3 million to its shareholders for refusing to proceed with the ThinkMarkets deal. Such an amount devastated FG's budget and left it with no cash.
According to FNG, FG is seeking $10-20 million in new funding in the form of a PIPE (private investment in public equity).
Such an infusion would help the company complete the merger, as the deal requires FG to have at least $10 million in cash.
If FG is able to secure outside financing, the agreement with ThinkMarkets will be renegotiated.
ThinkMarkets, a brokerage company founded in 2010, offers Forex and CFD trading services worldwide. ThinkMarkets is licensed by the FCA in the UK, ASIC in Australia, CySEC in Cyprus, JFSA in Japan, FSCA in South Africa, and FSA in the Seychelles.
