(Reuters) - Investment firm Linqto has terminated its $700-million deal to go public by merging with Blockchain Coinvestors Acquisition Corp, the blank-check company said on Monday.
In April, the investment platform Linqto had agreed to go public through a merger with Blockchain Coinvestors Acquisition.
On September 26, Linqto delivered a notice of termination of the Business Combination Agreement to Blockchain Coinvestors, effective the same day, the statement said.
SPACs, which boomed in 2020, have been struggling for the past couple of years as the market for blank check companies has soured due to poor financial performance and a regulatory crackdown by the US Securities and Exchange Commission.
San Jose, California-based Linqto, which has more than 750,000 users in 110 countries, allows users to make investments in unicorns - startups valued at over $1 billion - and other private companies.
As part of the deal's termination, Linqto will pay a $5 million termination fee to Blockchain Coinvestors, according to the statement.