TradeZero, a US and Bahamas-based broker-dealer, introduced on Tuesday that it has entered right into a definitive settlement for a merger with the clean test firm, Dune Acquisition Company. It will permit the buying and selling platform to turn out to be a publicly listed firm.
On the closure of the merger deal, the mixed entity shall be known as TradeZero International Inc., and its shares, underneath the ticker image TRAD, are anticipated to be listed on the New York Inventory Alternate (NYSE).
“We’re excited to accomplice with Daniel, Kosta Corriveau, and the remainder of TradeZero’s administration staff to convey this next-generation buying and selling platform to the general public markets,” stated Carter Glatt, the Founder and CEO at Dune.
Beneath the agreed phrases, Dune will merge with TradeZero at a proforma mixed enterprise worth of roughly $556 million and an fairness worth of $716 million. TradeZero’s current holders will roll all of their fairness holdings into the merged entity, turning into its majority shareholder with 70 p.c of the stakes.
Driving the Retail Buying and selling Frenzy
Based in 2015, TradeZero established itself as a commission-free inventory buying and selling platform. It gained reputation earlier this 12 months with the meme inventory frenzy, leading to an enormous surge in its new prospects.
“Essentially, we’re a buying and selling platform designed for the quickly evolving calls for of the person energetic dealer,” Daniel Pipitone, Co-Founder and CEO of TradeZero, stated. “As merchants’ sophistication has elevated throughout the retail group, we now have constructed a new-age system centered on offering the versatile capabilities wanted to equalize the enjoying area when transacting in U.S. equities and fairness choices.”
“We consider that we’re within the early-innings of addressing an underserved end-market ripe for continued funding.”
Earlier this 12 months, Robinhood went public on a US inventory trade. Nonetheless, the platform was closely fined for its controversial enterprise mannequin and remains to be going through criticism.