Digital lender Better endured a difficult debut on Wall Street Thursday, with its stock falling 93% in its first day of trading.
The company,
The lender earlier this month completed its merger with the SPAC first announced in May 2021.
In a statement Friday morning, Garg said the merger was priced in 2021 amid record-low rates.
"We believe that when interest rates normalize, our technology powered by Tinman will drive long-term growth and create shareholder value," Garg's statement said. "With $560 million in additional capital, we are one of the 5 most well-funded mortgage lenders in the industry."
Affiliates of Better sponsors NaMa Capital and SoftBank delivered $565 million to the lender at the time of its debut, including $528 million from the depository, a Japanese conglomerate. The SoftBank convertible notes include 1% interest per year and they mature in 2028, according to a Securities and Exchange Commission filing.
NaMa, formerly known as Novator Capital, also chose not to fund an additional $100 million at the time of closing
Better is no stranger to adversity, facing widespread negative media coverage following founder and CEO Vishal Garg's notorious firing of hundreds of employees over a Zoom call in December 2021. Since then, the company has
Garg in an interview last week suggested his team has "been through war together now," and the company was much stronger as a result of its struggles. Better leaders told National Mortgage News the capital infusion, along with plans to expand its One Day Mortgage offering and Tinman loan origination software, would be reasons to believe in the company's future.
The lender's rough trading kickoff comes at one of the toughest moments for the industry in years, with mortgage rates Thursday reaching a 22-year high average of 7.23%,
The lender is trading under the symbols "BETR" and "BETRW", after previously trading under Aurora's AURC symbol.