A day after it announced a merger with African Agriculture, 10x Capital Venture II in an 8-K said it had secured a basckstop with anchor investors against redemptions on the deal.
The investors, representing 3,355,743 shares, agreed not to redeem their holdings and to vote in support of a merger extension.
African Agriculture (AAGR) is a global food security company operating a commercial-scale alfalfa farm to meet the growing demand for agricultural commodities.
The transaction with 10X II has a pre-money enterprise value of $450 million.
The SPAC is clearly taking no chances on this deal, after terminating a merger agreement with PrimeBlock in August.
10X II and AAGR have already secured a $100 million standby equity facility from an affiliate of Yorkville Advisors. 10X II has also entered into a forward purchase agreement for up to $100 million with a client of Cohen and Company — another backstop to offset potential redemptions. Read more.
