10X Capital Venture Acquisition II in an SEC filing said it secured non-redemption agreements covering 9.99% of its total outstanding shares. The SPAC has scheduled a May 10 meeting for a shareholder vote on an extension proposal that would give 10X three more months to complete its deal with African Agriculture, a global food security company operating a commercial-scale alfalfa farm. If approved, that would extend the runway to Aug. 13. If the deal isn’t approved and completed by then, the 10X board at its discretion could extend six more times in monthly increments until February 2024.
The participating investors in the non-redemption agreement are to receive 110,261 Class B shares for holding their investment through the initial three-month extension, with the possibility of receiving up to 330,782 total Class B shares if the additional extensions are required.
The deal with African Agriculture has a $10 million minimum cash condition.
10X II and the target have 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 — a backstop to offset potential redemptions. Entities and funds managed by Cohen own equity interests in 10X II’s sponsor. Read more.
