Robinhood Markets (NASDAQ: HOOD) has struck a deal to acquire Canadian crypto platform WonderFi Technologies (TSX: WNDR) for $0.36 per share in cash, valuing the deal at roughly $250 million.
The acquisition price gives WonderFi shareholders a much-needed liquidity event after a prolonged share price slump.
“This transaction is the culmination of… efforts and the launchpad for Robinhood to democratize finance across Canada,” said WonderFi Executive Chairman Bobby Halpern.
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While the 41% premium over WonderFi’s last closing price and 71% over its 30-day VWAP may look attractive on paper, observers note this comes on the heels of years of value erosion—WonderFi’s shares once traded far higher before consolidations and market turbulence cut valuations.
Robinhood’s move appears aimed at fast-tracking its Canadian ambitions, leveraging WonderFi’s regulatory foothold and local talent. With a crypto hub already set up in Toronto and more than 140 employees in the country, Robinhood is betting on Canada as a springboard for its international crypto push.
On top of regulatory approvals, WonderFi will need two-thirds approval from common shareholders and warrant holders, along with a simple majority excluding related parties under minority protection rules. Notably, shareholders controlling 28% of WonderFi have already agreed to support the deal.
Still, the deal includes a $10.7 million break fee and tight no-shop provisions. The company will also terminate CoinSmart’s earnout rights to pave the way for closing.
WonderFi will be delisted from the TSX and cease to be a reporting issuer. Transaction costs are expected to hit $10.8 million.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
