Robinhood Markets Inc HOOD shares are trading greater on Tuesday after the business revealed it will get Canadian crypto trading platform WonderFi Technologies in an all-cash offer valued at around C$ 250 million ($ 178.9 million).
What To Know: The purchase cost of C$ 0.36 (26 cents) per share represents a 41% premium to WonderFi’s last closing cost and a 71% premium to its 30-day volume-weighted typical cost, signifying a substantial premium for existing investors.
The offer will be performed through a statutory strategy of plan, with Robinhood getting all exceptional WonderFi typical shares. WonderFi’s biggest investor, Mogo, which owns approximately 82 million shares, has actually currently signed a ballot assistance arrangement in favor of the deal. Other directors, officers and investors holding about 28% of WonderFi’s exceptional shares have actually likewise accepted support the offer, based on conditions.
Mogo noted its function in forming WonderFi through a previous tactical merger including Coinsquare in 2023, which combined 2 significant gamers in Canada’s crypto area. The acquisition by Robinhood is anticipated to provide the U.S. trading platform a more powerful grip in the Canadian digital possession market while broadening its international reach in cryptocurrency services.
The deal is anticipated to close in the 2nd half of 2025, pending investor and regulative approvals, together with other traditional closing conditions. Robinhood’s stock rallied on the news, showing financier optimism about the business’s worldwide growth method and the worth of the WonderFi acquisition.
HOOD Cost Action: Robinhood shares closed Tuesday up 8.95% at $62.57, according to Benzinga Pro.
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