EToro offered early employees and angel investors a chance to sell their shares to some of its institutional investors, according to a memo to employees obtained by CNBC.
Stock trading platform eToro agreed to a $120 million secondary share sale, giving the company a slightly lower valuation than the $3.5 billion it was valued at in a primary funding round earlier this year. It comes after eToro last year scrapped its plans to go public in a merger with a blank-check company, Fintech V.
"This is not a primary i.e. eToro is not raising money — rather it is a moment for some long standing shareholders and employees to take some liquidity. As always, please maintain confidentiality and do not share any details of this potential transaction with anyone. Employees with eligible options will receive an email with further details."
EToro agreed it would convert the investment to equity on the condition that the SPAC deal doesn't go ahead — which it didn't., now known as X, allowing users of the social media platform to access stock and crypto trading by searching for so-called "cashtags," which are searchable by adding a dollar sign before the ticker symbol of a stock or other asset.EToro said it is looking to expand its partnership with Twitter, or X, in a number of ways.