Crypto firm Prime Blockchain, 10X SPAC end $1.25 bln merger deal

African Agriculture Holdings

15/08/2022 12:37

Aug 15 (Reuters) - Blank-check vehicle 10X Capital Venture
Acquisition Corp II  VCXA.O  said on Monday it has mutually
ended its $1.25 billion merger deal with crypto mining and
infrastructure company Prime Blockchain.
    The termination underscores receding enthusiasm for special
purpose acquisition companies (SPACs) that became the preferred
route to stock markets for startups looking to sidestep a
traditional initial public offering.
    The companies, which had announced their merger in April,
did not give a reason for the latest move, but markets this year
have been reeling from sky-high inflation and recession fears
that have prompted several companies to pull the plug on their
SPAC deals.  urn:newsml:reuters.com:*:nL3N2VZ2MG
    Cooler-than-expected inflation data last week offered some
hope, but analysts have cautioned against too much optimism,
arguing that the Federal Reserve would seek a more solid proof
of inflation receding before slowing the pace of its rate hikes.

    

 (Reporting by Niket Nishant in Bengaluru; Editing by Shinjini
Ganguli)
 ((Niket.Nishant@thomsonreuters.com;))