Digital mortgage lender Better.com has accepted a 65% shareholder merger proposal with Aurora Acquisition Corp, a special purpose acquisition company (SPAC) that can go public without an initial public offering. Following the merger “around August 22, 2023”, the company intends to go public.
“At least 65% of the shareholders of the company’s common shares, entitled to vote at the general meeting, voted in favor of the offer,” Aurora Acquisition Corp CEO Arnaud Massenet was quoted as saying by HousingWire.
Upon completion of the transaction, the combined entity will receive at least $550 million in investment from SoftBank, according to an SEC filing.
The resulting corporation could also raise another $200 million if investment firm Novator, which is backing Aurora, exercises its $100 million option and SoftBank is forced to do the same.
Better.com originally intended to enter the stock market using SpaceX resources in 2021, but the deal expected by all investors did not take place. The company then began to have serious problems: layoffs, resignations of high-profile leaders, declining income.
Better.com is known to have posted a net loss of $89.9 million in the first quarter of 2023, but that’s not bad considering the loss of $327.7 in the first quarter of 2022. To date, the company has cut about 91% of its staff.
Better is avoiding bankruptcy over a settlement filed with the SEC with Aurora that would change the latter’s name to Better Home & Finance Holding Company.
Market experts did not expect the vote to take place so soon, many expected current events only in September.
Author:
Ekaterina Alipova
Source: RB
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