Quantum FinTech Acquisition Corporation [NYSE: QFTA] disclosed that TradeStation has submitted a registration statement on Form S-4 to the U.S. SEC regarding its recently declared proposed business merger with Quantum FinTech. Earlier on November 4, 2021, TradeStation and Quantum FinTech finalized a definitive business merger agreement through which TradeStation will become a publicly-traded NYSE-listed company under the ticker symbol “TRDE.”
The company revealed that the execution of the deal, which is likely to end in the first half of 2022, is dependent on Quantum FinTech’s shareholder’s authorization. Moreover, the Registration Statement being declared valid by the SEC, and fulfillment or relinquishment of other usual closing conditions pinpointed in the business combination agreement.
Furthermore, as per the deal, the combined company is worth an implied pro forma enterprise value of around $1.43 billion. Moreover, the Registration Statement features a preliminary proxy statement/prospectus in relation to the suggested business combination. After the Registration Statement is declared valid, the definitive proxy statement/prospectus, as well as other relevant documents, will be sent to shareholders of Quantum FinTech as of a record date to be established for voting on the business merger.
In addition, the deal will offer TradeStation nearly $326 million of cash before the payment of expenses, including the contribution of nearly $201 million of cash distributed from Quantum FinTech’s trust account and $125 million of additional capital gathered through a fully-committed private placement of common stock by Quantum FinTech (PIPE).
The companies are planning that the net profit from the deal will be used to help fund TradeStation’s plans to speed up the account and revenue growth through substantially increased brand-awareness and performance-based marketing spend, as well as improved product development and IT headcount for completion of certain new product feature projects, and to add liquidity to back an anticipated larger customer base.