A shell company formed for the purpose of acquiring a foothold in the hot fintech space has raised a $100 million war chest through an issue of ten million shares. FinTech Acqusition Corp was created in November 2013 by the leadership team of Bancorp, a financial services holding company with more than $4.3 billion in assets.
Ten million shares in the vehicle were floated last week at a price of $10 per share, with the offer closing yesterday. The warrants included in the offering, which are to be traded on Nasdaq under the symbol FNTCW, can be exercised at $12 per share price.
The firm says it will use the proceeds “for the purpose of acquiring or merging with one or more businesses or entities in the financial technology industry”.
“We will seek to acquire established businesses that we believe are fundamentally sound but potentially in need of financial, operational, strategic or managerial redirection to maximise value,” the company said in its prospectus. “We do not intend to acquire startup companies, companies with speculative business plans or companies that are excessively leveraged.”