Circle Terminates SPAC Merger Deal, Cancels Listing Plan

Stablecoin provider Circle is no longer set to list publicly via a merger with Concord Acquisition Corp, in a decision that has been approved by the directors of both entities.

Circle had been eyeing an entry into the stock market via a merger with Concord Acquisition Corp, a New York Stock Exchange (NYSE) listed special purpose acquisition company (SPAC). The merger could not be completed before the expiration of the transaction agreement as the SEC has yet to declare the S4 registration statement 'effective,' as a Circle representative said.

The firm had been anticipating a 2022 date for the listing, with its CFO expecting the process to be completed at some point in the fourth quarter of this year.

The agreement between the two companies would have valued Circle at USD 9 billion, an increase from the USD 4.5 billion which was originally announced in July 2021. Circle is primarily known as the company behind stablecoin USDC, currently one of the largest cryptocurrencies and the second largest stablecoin by market capitalization exceeding USD 43 billion as per CoinGecko.

As representatives said, the move to terminate the agreement was disappointing for them, but Circle is still set on becoming a public company, with no clear deadline.

(Source: The Paypers)