E.Merge Technology Acquisition in a press release and 8-K filing said it will liquidate, effective Sept. 4, due to its inability to complete a deal within deadline. The SPAC’s warrants will expire worthless.
Asia Innovations Group Ltd., the startup that operates social platform Uplive, was reported in May to be in talks about combining with E.Merge, with a deal value of at least $2 billion.
In a letter to shareholders, SPAC management wrote: “While we believe that SPACs will continue to play a meaningful part of the capital markets solutions for a number of high-quality private companies looking to go public, we acknowledge the unforeseen market conditions that have persisted in the SPAC markets created an unbearable headwind for E.Merge. Specifically for E.Merge, we were impact by 2 main drivers: 1) large disconnect between seller-buyer expectations with sellers anchored by previous valuation rounds in a significantly different valuation environment that pushed some potential partners to delay their public market debut, 2) high SPAC redemption rates and effectively closed common stock PIPE market that led to significant deal uncertainty.”
E.Merge raised $600 million in a July 2020 IPO. Read more.
