This Crypto Exchange scraps $9 billion worth SPAC Plan

Paigambar Mohan Raj
Source: Coin Guides

Bullish, the crypto exchange backed by Peter Thiel has mutually agreed with SPAC (special purpose acquisition company) Far Peak Acquisition Corporation, to call off their $9 billion worth merger.

A SPAC is a corporate entity founded only for the purpose of raising cash through an IPO or merging with another company. Far Peak and Bullish agreed to a merger in July 2021. The merger would have publicly listed the crypto exchange on the New York Stock Exchange (NYSE).

Bullish debuted its services in November 2021, offering only six crypto tokens for trading.

Thomas Farley, Chairman, and CEO of Far Peak stated,

“We are disappointed that we were unable to present the Bullish transaction to our Far Peak shareholders […] I am a big believer in Bullish’s talented team, their vertically integrated approach to exchange liquidity, and their unwavering commitment to regulation, and the highest standards of industry transparency.“

According to Far Peak’s updated and restated memorandum and articles of association, all activities will stop if an initial business combination is not completed by March 7, 2023, except those necessary for winding up the company.

Why did the crypto exchange call off the merger?

As per the official statement, the companies would not be able to meet the SEC’s (Securities and Exchange Commission) listing standards by the end of the year. If the transactions are not completed by December 31, 2022, both parties have the right to cancel the Agreement.

The firm’s effort to become a publicly traded business is taking longer than anticipated, said Brendan Blumer, Chairman, and CEO of Bullish. He does, however, recognize the SEC’s ongoing efforts to establish new rules for digital assets. The SEC is also working to “clarify industry-specific disclosure and accounting complexities.”

The two stated that the previously filed registration statement on Form F-4 could not be deemed effective in time for the shareholders to approve and close the deal.

Far Peaks stated that it will not be looking for a new merger partner because of the “time constraints and market conditions.” However, the firm “will instead focus on winding up either on March 7, 2023 or sooner if practicable.”