Special purpose acquisition company (SPAC) FG Acquisition Corp. announced amendments to its merger agreement with Think Financial Group Holdings Limited, operator of brokerage firm ThinkMarkets.
The amendments to the agreements move the closing date of the merger between FG Acquisition and ThinkMarkets to September 15, 2023.
The deal with FG Acquisition, which will allow ThinkMarkets to become a public company, was originally scheduled to close on July 28, 2023, according to Zhihu.
However, the deal was put in jeopardy after many holders of FG Acquisition's Class A shares withdrew their funds from the company to prevent the merger from going through. They were motivated by a ThinkMarkets report that showed the brokerage's weak economic performance and mounting losses totaling more than $20 million.
Due to this situation, FG Acquisition has urgently started to raise funds through PIPE (private investment in public equity).
However, it remains a mystery to many experts whether FG Acquisition will be able to salvage the ThinkMarket merger deal.
Also read: Interactive Brokers improves client conditions and raises the interest rate on cash balances to 4.83%.
