XPAC Acquisition in an 8-K disclosed that its merger partner SuperBac on May 2 told the SPAc it was terminating the deal. The decision was based on multiple factors, according to the filing, including unfavorable market conditions and trends in share price performance of recent de-spac companies, heightened volatility and share price risks and the fact that no pipe investments had been entered into that would provide sufficient funds. Anticipated PIPE financing from Modal Yorkville had not been secured. Lacking those funds, SuperBac indicated the minimum cash condition could not be met.
While XPAC has until Aug. 3 to sign and seal a new deal, the SPAC said in the regulatory filing that the more likely outcome will be liqudation if shareholders approve.
SuperBac manufactures biological products from bacteria for use in the agriculture, sanitation, and oil and gas sectors. The XPAC deal had a closing equity value of about $317 million.
XPAC raised $200 million in an ipo last August. Read more.
Source: SuperBac Walks Away From XPAC Acquisition Deal; SPAC May Liquidate