Companies reveal merger discussions
Publicly traded SPAC Figure Acquisition Corp has revealed it is in talks to merge with an unnamed warehouse lender and bank holding company with nationwide mortgage lending and servicing operations (the bank).
Figure and the bank – a private $3-5 billion asset holding company that provides home loans – have signed a non-binding letter of intent to merge. Figure is also looking to eventually integrate its blockchain technology into the bank’s warehouse business.
“We believe the proposed transaction provides a unique value creation opportunity by combining the bank’s sound balance sheet, nationwide footprint and seasoned management team with our team’s deep understanding of, and experience with, the application of technology to regulated financial services businesses as well as the necessary capital to grow and execute against our shared vision of the future of banking,” said Michael Cagney, chairman of the board of directors of Figure Acquisition.
The proposed transaction is subject to stockholders’ approval, with no assurance when the agreement will be finalized.
“I would also like to remind our stockholders that the company is seeking stockholder approval of an extension of time to complete our initial business combination, from February 23, 2023, to August 23, 2023,” Cagney said. “We believe the extension will provide us with the required time to complete the Proposed Transaction. If you are a stockholder of record as of November 14, 2022, the record date for the stockholder meeting, I strongly recommend that you vote in favor of the extension.”
