ThinkMarkets to Amplify Global Presence with SPAC Merger In Canada and Public Trading

Retail Forex (FX) and Contract for Difference (CFD) broker ThinkMarkets has declared its plans to go public via a merger with a Special Purpose Acquisition Company (SPAC), FG Acquisition Corp (TSE: FGAA.U), based in Canada. The proposed business combination transaction will culminate with ThinkMarkets listing on the Toronto Stock Exchange, valued at a pre-merger estimation of $160 million USD.

The companies made it known that ThinkMarkets' revenues have experienced a significant surge from $35 million in 2019 to over $62 million in 2022. The user base of ThinkMarkets has also grown exponentially, boasting 138,500 approved clients as of March 2023, a substantial increase from a meager 17,200 at the close of 2015.

This declaration follows last week's resolution of a protracted legal dispute between ThinkMarkets and iS Prime, originating from the 2017 sale of ThinkMarkets' ThinkLiquidity B2B risk and liquidity business to iS Prime. The absence of lingering litigation will undoubtedly make the upcoming deal more appealing to investment bankers, who are inclined towards “clean” transactions.

It is noteworthy that two similar attempts by Retail FX and CFD brokers to go public via SPAC mergers have fallen through in recent years. Last summer, Israel-based eToro retracted its plans to go public through a NASDAQ-listed SPAC merger. Also, Saxo Bank, based in Copenhagen, aborted its SPAC-merger plans in Europe in December 2022. The cancellation would have led to Saxo's IPO at an approximate $2 billion valuation.

FG Acquisition Corp, listed on the Toronto Stock Exchange, is under the control of Larry G. Swets Jr., a casualty insurance executive based in the United States. Following the merger, the new entity will be christened ThinkMarkets Group Holdings Limited. The management team will include ThinkMarkets' co-founders Nauman Anees, as CEO, and Faizan Anees, as President, as well as other members of the existing management. The board of directors will comprise Nauman Anees, Faizan Anees, Larry G. Swets, Jr., Julian Babarczy, Andrew B. McIntyre, Peter Huitsing, and Symon Brewis-Weston.

The parties predict the transaction to be concluded by July 2023. The deal will not only transition ThinkMarkets into a publicly traded entity but also avail it of approximately $125 million in net cash proceeds. This financial injection will facilitate ThinkMarkets' growth strategy, enabling the exploration of new markets and the development of new products. FG Acquisition Corp currently holds approximately $117 million in escrowed funds from its IPO. In addition, the parties have announced an up to $20 million private placement of convertible debentures as part of the transaction. Canaccord Genuity, an investment bank, will serve as the lead agent on the private placement.

Larry G. Swets, Jr., FG Acquisition Corp's CEO, expressed excitement about the acquisition, highlighting ThinkMarkets as a “compelling investment opportunity”. Nauman Anees, ThinkMarkets' Co-Founder, and CEO, reciprocated the enthusiasm, stating they are “excited to start our journey as a public company with the support of FGAC”.

About ThinkMarkets

ThinkForex, rebranded as ThinkMarkets in 2016, was founded by brothers Nauman and Faizan Anees in 2010. Initially established in New Zealand, the company moved its headquarters to Australia in 2012 after securing ASIC licensing. With dual headquarters in Melbourne and London, ThinkMarkets operates through its FCA-licensed subsidiary TF Global Markets (UK) Limited, established in 2015. Additionally, ThinkMarkets has licensed subsidiaries in South Africa and Cyprus, and most recently, it has launched a licensed operation in Japan. The company provides trading services on its proprietary ThinkTrader platform, as well as MT4 and MT5.

The transition to a public company is a significant milestone for ThinkMarkets, and this merger presents an opportunity for further expansion and innovation. As ThinkMarkets embarks on this new chapter, the market will undoubtedly watch with interest, given the previous failed attempts of other FX and CFD brokers to go public via SPAC mergers. The successful conclusion of this merger could serve as a blueprint for other companies in the industry.

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