On January 18, SoFi Technologies Inc. (SOFI) announced receiving regulatory approvals for becoming a bank holding company. Following the announcement, the stock rallied in the after-hours to gain a huge 16.50%.
During regular trading, SOFI stock suffered a loss of 8.64% at its close of $12.06 on Tuesday. Consequent to the news, the stock was trading at $14.05 in the after-hours at a hefty volume of 10.97 million shares.
The financial services provider, SoFi Technologies Inc. has a market capitalization of $10.65 billion. In the past five days, its 806.92 million outstanding shares have decreased by 9.80%. Currently, the stock stands at a year-to-date loss of 23.72%, while it lost 40.18% last year.
SOFI’s Regulatory Approval
As per Tuesday’s announcement, the Office of the Comptroller of Currency (OCC) and the Federal Reserve have approved its applications. The company had submitted applications for becoming a bank holding company through Golden Pacific Bancorp, Inc.’s acquisition. Also, to operate its bank subsidiary as SoFi Bank, National Association. Hence, as per the remaining customary closing conditions, the acquisition is expected to close in February.
Previously, SOFI had announced a definitive agreement by its subsidiary Social Finance Inc., for the acquisition of Golden Pacific Bancorp Inc. (GPBI) and Golden Pacific Bank, N.A. (a wholly-owned subsidiary of GPBI).
Furthermore, the company intends to continue on its national, digital business plan while also nurturing community bank business and the footprint of GPB. Additionally, the company also plans to contribute $750 million in the capital. Consequently, SOFI will achieve the status of SoFi Bank, National Association’s parent company after the acquisition is completed.
Completion of Redemption of Outstanding Warrants
On October 8, 2020, warrants for buying SOFI’s common sock shares, par value $0.0001 per share, under the Warrant Agreement were issued. These warrants were issued by and between the company and Continental Stock Transfer & Trust Company, as a warrant agent. Further, these warrants were sold as part of the company’s initial public offering.
On December 15, the company announced the completion of the redemption of these outstanding warrants. Moreover, the outstanding warrants issued under the Warrant Agreement in a simultaneous private placement were also redeemed completely.
Resultantly, in regard to the redemption, the Public Warrants were delisted and stopped trading on NASDAQ.
In addition, the outstanding warrants in relation to the company’s business combination with Social Capital Hedosophia Holdings Corp. V, are outstanding and unaffected.
