SCVX Corp. (SCVX) Cancels Non-Binding LOI. Continues the Search…
This afternoon, SCVX Corp. III (Nasdaq: SCVX), filed an 8-K announcing that they have terminated their previously announced non-binding LOI.
While not much was known about the company with which it had been negotiating (it was unnamed), it was disclosed that its focus was in the Environmental, Social, and Governance (ESG) space. It was also released that the target company’s existing shareholders were anticipated to roll over 100% of their equity.
Furthermore, as part of the previous announcement in January, it was revealed that SCVX had already rounded up $75 million in PIPE indications from an institutional investor and certain strategic partners. Securing a PIPE in the 2022 SPAC market was a very promising sign at the time.
Nonetheless, this non-binding LOI has now been terminated and SCVX stated that it is, “currently exploring alternative options for consummating a business combination.”
SCVX had previously announced a combination with manufacturing-software company Bright Machines on May 17, 2021, but subsequently terminated that agreement on December 13, 2021, citing, “..the low likelihood that the business combination agreement could be completed prior to the January 15, 2022 “outside date” .”
SCVX, which original priced its IPO on January 24, 2020, with a cybersecurity focus, now has until July 28, 2022 to complete a new combination. SCVX had earlier extended it’s deadline six months on January 28th, and will most likely need to extend further with only 3.9 months remaining on its clock.