Unique: ThinkMarkets IPO accomplice FG Acquisition confirms money lowered from $118M to only $2M

FNG Unique… Additional to our unique report again in July that FG Acquisition Corp (TSE:FGAA.U), the particular function acquisition firm (or SPAC) which has agreed to merge with Retail FX and CFDs dealer ThinkMarkets, had seen a mass redemption occasion whereby just about all of FG’s public shareholders elected to redeem their shares for money as a substitute of going forward with the ThinkMarkets merger, FNG has now discovered from regulatory filings made in Canada that FG’s coffers have certainly been practically emptied from the redemption.

In line with the filings, FG Acquisition’s “Funds Held in Escrow” fell from USD $118.7 million at June 30, 2023, to only below $2.5 million as at September 30, 2023.

ThinkMarkets IPO background

In mid Could 2023 FG Acquisition and ThinkMarkets introduced their intention to merge, in a deal that might successfully deliver ThinkMarkets public on the Toronto Inventory Trade at a valuation of USD $160 million. The transaction would have seen FG’s public class A shareholders personal a 43.3% curiosity within the mixed firm, whereas ThinkMarkets’ shareholders would get 53.4%. The SPAC sponsors behind FG Acquisition, led by financier Larry G. Swets Jr., would obtain the remaining 3.3%.

Nevertheless in early July 11,398,742 FG class A shares (out of about 11.5 million shares in whole) have been deposited by FG public shareholders again to the corporate, and have been redeemed by FG at a worth of roughly USD $10.21 per share – which means that FG returned about $116.3 million in money to its shareholders, who elected to get their a reimbursement from FG as a substitute of going forward with the transaction with ThinkMarkets, as was their proper. The redemption successfully emptied FG’s coffers, leaving FG as a publicly traded shell with just about no money. (The $2.5 million remaining principally represents curiosity earned on the Funds Held in Escrow earlier than they have been returned to shareholders).

The mass redemption by FG shareholders got here on the heels of an FNG Unique report that ThinkMarkets had piled up debt and losses within the tens of million of {dollars} over the earlier two years (2021-2022), whereas its auditors had issued a “going concern” warning for mum or dad firm Assume Monetary Group Holdings Restricted in Australia.

ThinkMarkets IPO transferring ahead

Whereas FG Acquisition formally withdrew its preliminary prospectus associated to the merger with ThinkMarkets earlier this month, it has nonetheless indicated its intention to go forward with the ThinkMarkets deal.

With the intention to go forward with the transaction, FG is dealing with an already-once-extended deadline of November 30 (i.e. subsequent Thursday) to provide you with a minimum of $10 million in contemporary capital, or else the merger with ThinkMarkets shall be referred to as off, until the deadline is re-extended.

We’ll proceed to comply with this story because it unfolds.