Better.com continues with its SPAC merger with Aurora

Better.com is continuing with its intended merger with Aurora Acquisition Corp, which could bring the merged business $750 million in new funding, according to a filing from July 14. The company's most recent action is to urge shareholders to approve the deal.

The digital mortgage firm which started making arrangements to list publicly via a SPAC in May 2021, has stated that it plans to proceed with its scheduled public debut. Since it announced its intentions to merge with a SPAC, Better.com has experienced its fair share of difficulty, including unplanned layoffs and shifting market conditions that had an impact on some of its business.

SoftBank, which initially partnered with Aurora Acquisition Corp to inject $750 million into Better's business in November in anticipation of the SPAC merger, is not mentioned in the document, according to TechCrunch.

Since a few months ago, the startup has been mired in problems that are partly attributable to CEO Vishal Garg's allegedly strict management style, the way the company handled multiple mass layoffs, and a resulting leadership exit. Sarah Pierce, a former executive of Better.com, filed a complaint against the business in June, accusing Garg of deceiving investors in order to go public.

“In just six years, Better has helped hundreds of thousands of Americans invest in themselves and their families by financing or refinancing their homes. For the average American consumer, their home represents roughly 65% of their net worth. This transaction will enable us to continue providing a better outcome for folks in search of the security and opportunity that homeownership brings,” Garg said in a statement.

According to Garg, the company is singularly obsessed with the customer experience offering a way for "those who have capital" and enabling those who can use it to enhance their lives and that of their families and communities.

Better offers a totally different approach to home buying by utilizing technology to lower costs and give buyers the broadest selection of suitable products. Better's operations can be trusted because of their dedication to maintaining strict financial control.

Better, which was founded in 2016, offers mortgage, real estate, title, and homeowners insurance services. According to the company, Better Mortgage funded home loans totaling over $58 billion in 2021. A $7.7 billion valuation for Better.com's IPO in the SPAC agreement was predicted for 2021.

As a result of the filing's disclosure that Better is the subject of an investigation by the SEC Division of Enforcement, a previously obscure problem has now come to light.

The filing states that the Division of Enforcement of the SEC sent voluntary requests for documents to Better and Aurora in the second quarter of 2022, informing them that it was looking into Better to see whether any violations of the federal securities laws had taken place. Better and Aurora have been asked to voluntarily submit certain information and records to the SEC. The requests address, among other things, specific business and operational aspects of Better, specific situations involving the founder and CEO of Better and his other professional endeavors, related party business dealings, and claims made in a lawsuit brought by Sarah Pierce, Better's former head of sales and operations. Both companies are cooperating with the SEC.