Social Finance, Inc. announced that it has signed a purchase agreement to issue 122,500,000 SCH class A common stock at a price of $10 per share for the gross proceeds of $1,225,000,000 co-led by Chamath Palihapitiya and affiliates of SCH Sponsor V LLC on January 7, 2021. The transaction also included participation from new investor funds managed by BlackRock, Inc. (NYSE:BLK), Durable Capital Partners, LP, Altimeter Capital Management, LP, Baron Capital Group, Inc., Coatue Management, L.L.C., Healthcare of Ontario Pension Plan, for combined value of $950,000,000 to collectively own 10.8% stake. Chamath Palihapitiya, affiliates of SCH Sponsor V LLC, and directors, officers or equity holders of Social Capital Hedosophia Holdings Corp.

V will contribute combined $275,000,000 to collectively own 5.4% stake. The company will issue 14.2% stake at a post-money valuation of 8,651,000,000. The shares will be issued pursuant to exemption provided by Regulation D and Section 4(a)(2) of the Securities Act.

The agreements will terminate with no further force and effect upon the earliest to occur of, such date and time as the merger agreement is terminated in accordance with its terms, the mutual written agreement of the parties to such agreement, if any of the conditions to closing set forth in such agreement are not satisfied on or prior to the closing and, as a result thereof, the transactions contemplated by the agreement fail to occur. The transaction has been unanimously approved by independent directors of the company and is subject to customary closing conditions, including any applicable regulatory approvals. The transaction is expected to close in the first quarter of 2021.

The shares to be issued are subject to hold period of 180 days from issuance.