The press release kept details to a minimum on the target, but disclosed that the bank is a $3-5 billion asset holding company that provides home loans to communities across the nation.
Figure I also disclosed that there is potential to eventually bring blockchain into the bank. However, the press release noted that this introduction of technology to Figure’s target will be subject to all required regulatory approvals.
This move, however, is consistent with Figure 1’s thesis of finding a working business where blockchain can be leveraged in a meaningful way. The SPAC is sponsored by Fintech Acquisition LLC, which is an affiliate of Figure Technologies, Inc. Figure is a technology company that offers financial solutions leveraging blockchain, artificial intelligence, and advanced analytics. The company hopes to implement its DART technology, a digital lien and eNote registry system, into the bank’s warehouse business after closing.
Today’s LOI comes just a week before FACA’s extension vote on December 16, where the company hopes to gain shareholder approval to extend its timeline from February 23, 2023 to August 23, 2023. Typically by announcing an LOI right before an extension vote, there is the hope that the prospect of a specific deal will give shareholders something to chew on and stick around at the vote to at least see and hear more.
But, since this deal is not at the “definitive agreement” stage, and is still just a non-binding LOI, SPACInsider will not consider this deal fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.
Figure I announced the pricing of its $250 million IPO in February 2021 to pursue opportunities in the financial technology and financial services sector. The company is led by Chairman Michael Cagney and President and CEO Christopher D. Davies.