The two crypto lending companies Nexo and Vauld have broken off their long-running negotiations over a potential merger. Since July of this year, the two sides have been on this topic.
The Firms Will Not Be Carrying On With The Deal
With a view to acquiring the Vauld company, the Nexo lending firm has been in discussions with the Vauld lending firm. However, this agreement produced no result and has been terminated.
According to a report from an unnamed source, this long dialogue has been cancelled after six months of negotiations between the two companies, which led to no positive yield.
The founder of Vauld, Darshan Brathija, informed the company’s creditor through email that the contract had been canceled because of the six-month-long unsuccessful negotiations with the Nexo financing company regarding the purchase of the Vauld company.
These two businesses first spoke in July, when the Vauld Firm had to halt withdrawals of funds until further notice due to a liquidity issue.
Nexo had just begun a 60-day arrangement with Vauld to buy its company and relieve it of its liquidity crisis within that time, but six months have passed since that unsuccessful conversation.
Also read:Prior to the 60-day term expiring, the two corporations extended it to a longer amount of time while negotiations over the purchase were still underway and both sides were considering this course of action.
Reasons Behind The Unsuccessful Agreement
According to this unnamed source, other circumstances played a part in this real’s termination. One of them had Vauld being severely and negatively impacted by the Terra Luna crash and losing a sizable sum of money.
Additionally, there were concerns about Indian exchanges grabbing and hanging onto their assets, as well as some of their findings becoming caught in the FTX exchange during the FTX crash.
Additionally, Nexo had relocation plans, thus brokering a deal now made little sense to all sides and they were forced to end the negotiations.
The Vauld firm was presented with Nexo’s terms just before the agreement was abandoned, but the Vauld and its creditors didn’t seem satisfied with the terms they were given.
According to Vauld, they quickly shifted their focus and informed Nexo to cancel all plans for the deal while keeping an eye out for other companies that could assist in this cause.
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