BLOCKCHAIN COINVESTORS ACQUISITION CORP. I ANNOUNCES TERMINATION OF BUSINESS COMBINATION AGREEMENT WITH LINQTO, INC.

Rhea-AI Summary

Blockchain Coinvestors Acquisition Corp. I (Nasdaq: BCSA), a blank-check company, announced the termination of its business combination agreement with Linqto, Inc. The agreement, initially entered on April 9, 2024, was terminated by Linqto on September 26, 2024. As per the terms of the agreement, Linqto agreed to pay BCSA a termination fee of $5.0 million within 30 days of the termination date. This development marks the end of the planned merger between BCSA, a special purpose acquisition company (SPAC), and Linqto.

Positive

• BCSA to receive a $5.0 million termination fee from Linqto

Negative

• Termination of the business combination agreement with Linqto
• Potential loss of strategic growth opportunity for BCSA

Insights

Financial Analyst

The termination of the business combination agreement between Blockchain Coinvestors Acquisition Corp. I (BCSA) and Linqto is a significant development for BCSA shareholders. As a Special Purpose Acquisition Company (SPAC), BCSA's primary purpose was to identify and merge with a target company. This termination means BCSA must now restart its search for a suitable merger candidate.

The $5 million termination fee to be paid by Linqto provides some compensation to BCSA, which can help cover expenses and potentially extend the SPAC's life. However, this amount is relatively small compared to BCSA's $144.9 million market cap. The termination also raises questions about BCSA's ability to complete a deal within its specified timeframe, which could put pressure on the stock price.

Investors should closely monitor BCSA's next steps, including any potential timeline extensions or new merger targets. The SPAC market has been challenging recently and this termination reflects the difficulties in completing these transactions in the current economic environment.

GRAND CAYMAN, Cayman Islands, Sept. 30, 2024 /PRNewswire/ -- Blockchain Coinvestors Acquisition Corp. I (Nasdaq: BCSA) ("BCSA"), a blank-check company formed for the purpose of acquiring or merging with one or more businesses, today announced that its business combination agreement with Linqto, Inc. ("Linqto") has been terminated.

As previously announced, on April 9, 2024, Blockchain Coinvestors Acquisition Corp. I, a Cayman Islands exempted company ("BCSA"), entered into a Business Combination Agreement (the "Business Combination Agreement"), by and among BCSA, Linqto and BCSA Merger Sub I, Inc.

On September 26, 2024, Linqto delivered to BCSA a notice of termination of the Business Combination Agreement pursuant to Section 7.2(a) thereof, effective the same day.

In connection with the termination of the Business Combination Agreement and pursuant to Section 7.2(b) thereof, Linqto agreed to pay BCSA a termination fee of $5.0 million promptly but in no event later than 30 days following the date of termination.

About Blockchain Coinvestors Acquisition Corp. I

BCSA is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. BCSA is led by Chairman and Managing Director Matthew Le Merle, Chief Executive Officer and Managing Director Lou Kerner, Managing Director Alison Davis, and Chief Financial Officer Mitchell Mechigian.

Participants in the Solicitation

BCSA and its directors, executive officers, other members of management and employees may, under SEC rules, be considered participants in the solicitation of proxies of BCSA's shareholders in favor of the approval of the proposals to be voted on at the Extraordinary General Meeting. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of BCSA's directors and officers in the Proxy Statement, which may be obtained free of charge at from the sources indicated below.

No Offer or Solicitation

This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities and does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities will be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on the current expectations of BCSA's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. These statements are subject to a number of risks and uncertainties indicated from time to time in BCSA's filings with the SEC. There may be additional risks that BCSA presently does not know or that BCSA currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements provide BCSA's expectations, plans or forecasts of future events and views as of the date of this communication. BCSA anticipates that subsequent events and developments will cause BCSA's assessments to change. However, while BCSA may elect to update these forward-looking statements at some point in the future, BCSA specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing BCSA's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Contact

Blockchain Coinvestors Acquisition Corp. I:
Vaibhav Kumar
RFB | Peaks Strategies
vaibhav.kumar@rfbinder.com 

View original content:https://www.prnewswire.com/news-releases/blockchain-coinvestors-acquisition-corp-i-announces-termination-of-business-combination-agreement-with-linqto-inc-302261940.html

SOURCE Blockchain Coinvestors Acquisition Corp. I

FAQ

Why was the business combination agreement between BCSA and Linqto terminated?

The press release does not specify the reason for the termination. It only states that Linqto delivered a notice of termination to BCSA on September 26, 2024.

What is the termination fee that Linqto agreed to pay BCSA (Nasdaq: BCSA)?

Linqto agreed to pay BCSA a termination fee of $5.0 million, to be paid within 30 days following the date of termination.

When was the original business combination agreement between BCSA (Nasdaq: BCSA) and Linqto signed?

The original business combination agreement between BCSA and Linqto was entered on April 9, 2024.

What is Blockchain Coinvestors Acquisition Corp. I (Nasdaq: BCSA)?

Blockchain Coinvestors Acquisition Corp. I is a blank-check company formed for the purpose of acquiring or merging with one or more businesses.