Abstract：ThinkMarkets, a prominent retail FX broker, has reached an agreement with FG Acquisition Corp (TSE: FGAA.U), a Canadian special purpose acquisition company (SPAC), to undergo a proposed business combination transaction. This strategic move will enable ThinkMarkets to go public on the Toronto Stock Exchange, with a pre-merger valuation of approximately USD $160 million.
ThinkMarkets, a prominent retail FX broker, has reached an agreement with FG Acquisition Corp (TSE: FGAA.U), a Canadian special purpose acquisition company (SPAC), to undergo a proposed business combination transaction. This strategic move will enable ThinkMarkets to go public on the Toronto Stock Exchange, with a pre-merger valuation of approximately USD $160 million.
In recent years, ThinkMarkets has experienced substantial revenue growth, increasing from USD $35 million in 2019 to over $62 million in 2022. The company boasts an impressive user base of 138,500 approved clients as of March 2023, a significant jump from 17,200 at the close of 2015.
It is worth noting that this marks the third attempt by a retail FX and CFDs broker to pursue a public listing through a SPAC merger in recent years. Previous endeavors by eToro, an Israel-based platform, and Copenhagen-based Saxo Bank ended in failure.
The transaction is expected to conclude in July 2023. Apart from facilitating ThinkMarkets' transition into a publicly traded company, the merger will generate approximately $125 million in net cash proceeds. These funds will be utilized to pursue growth strategies in new markets and expand the range of products offered. FG Acquisition Corp presently holds approximately $117 million of escrowed funds from its initial public offering, and as part of the transaction, a private placement of convertible debentures worth up to USD $20 million will be launched. Leading investment bank Canaccord Genuity will act as the lead agent for the private placement.
ThinkMarkets on WikiFX
ThinkMarkets is a forex and CFD broker founded in Australia in 2010. The company has multiple regulations, including the UK FCA, Cyprus CYSEC, Australia ASIC, and Seychelles FSA. This means that traders can be confident that ThinkMarkets meets strict safety and regulatory standards in all jurisdictions where it operates. WikiFX has given this broker a decent score of 7.94/10.
