Backed by Chamath Palihapitiya, SoFi will start trading on the Nasdaq. Here’s when.
Investors in Chamath Palihapitiya’s Share capital Hedosophia Holdings V (NYSE: IPOE) finally has the news they were expecting Tuesday. The merger of the Special Purpose Acquisition Company (SPAC) with personal financial services company Social Finance (known as SoFi) will proceed as planned.
The business combination is expected to be completed on May 28. The shares of Social Capital Hedosophia Holdings V will then be exchanged one for one for SoFi shares and transferred to the company. Nasdaq exchange. Social Finance Technologies stock is expected to start trading on Tuesday, June 1, using the symbol SOFI.
The news comes just weeks after the company announced that it had restated its financial data to comply with a recent directive issued by the Securities and Exchange Commission regarding the accounting treatment of SPAC warrants – which allow early investors to buy stocks at a predetermined price. There has been an explosive growth in these deals over the past year, with many start-ups bypassing the traditional initial public offering in favor of the PSPC merger. The SEC concluded that PSPC warrants should be carried as a liability on the balance sheet rather than recognized in equity, which would lead to a cascade of restatements.
SoFi has over 1.8 million members and offers a host of personal financial services, including individual loans, credit cards, real estate mortgages, student loans, and investment brokerage services. As part of its services, SoFi offers free benefits to members, including financial planning.
The company made waves earlier this year when it announced plans to acquire Golden Pacific Bancorp, a move that will revive SoFi’s banking ambitions while expanding its product offering.
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