TradeZero, a US and Bahamas-based broker, announced Tuesday that it has entered into a definitive agreement to merge with blank check company Dune Acquisition Corporation. This will allow the trading platform to become a publicly listed company.
Upon closing of the merger transaction, the merged entity will be called TradeZero Global Inc. Its shares, under the ticker symbol TRAD, are expected to be listed on the New York Stock Exchange (NYSE).
“We are excited to partner with Daniel, Kosta Corriveau, and the rest of the TradeZero management team to bring this next-generation trading platform to the public markets,” said Carter Glatt, Dune Founder and CEO.
Under the agreed terms, Dune will merge with TradeZero for a combined initial enterprise value of approximately $556 million and an equity value of $716 million. TradeZero’s current owners will rotate all of their holdings of stock in the merged entity, becoming its largest shareholders with 70 percent of the stake.
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Ride the frenzy of retail
Founded in 2015, TradeZero has established itself as a commission-free stock trading platform. It gained popularity earlier this year with the meme stock craze, which led to a massive increase in its new customers.
“Essentially, we are a trading platform designed to meet the rapidly evolving requirements of the individual active trader,” said Daniel Pipiton, Co-Founder and CEO of TradeZero. “As traders become increasingly sophisticated across the retail community, we have created a new system focused on providing the flexible capabilities needed to level the playing field when dealing in US stocks and options.”
“We believe we are in the early stages of addressing an underserved and mature end market for continued investment.”
Earlier this year, Robinhood also went public on a US stock exchange. However, the platform has been heavily fined for its controversial business model and continues to face criticism.