Nexo has offered an indicative term sheet for the acquisition of crypto exchange, Vauld.
The firm, in a statement posted on its website, said that the offering was its way of salvaging the situation “as one of the few companies in a position to help distressed industry participants.”
The firm disclosed that it has signed an indicative term sheet with Vauld that grants Nexo a 60-day exclusive exploratory period related to its intended acquisition of Vauld.
Vauld noted that this follows a satisfactory outcome of the initiated due diligence process, which will allow Nexo to fully acquire Vauld after the transaction is completed successfully.
Nexo, in the statement, said “The current market conditions are to a large degree reminiscent of the Bank Panic of 1907, characterized by excessive leverage in the system, an overabundance of companies in trouble, and no lender of last resort.
“Today, it is again in the hands of a few capable and well-capitalized entities to come up with systemic solutions and aid the sector. As one of the few companies in a position to help distressed industry participants, Nexo takes this responsibility with the utmost seriousness and has retained the advisory services of two major Wall Street banks to receive best-in-class
advice on several acquisitions and liquidity provision options currently underway.
Nexo added that it has employed the services of two Wall Street Banks to assist in the ongoing acquisitions and liquidity processes.
“The current market conditions are to a large degree reminiscent of the Bank Panic of 1907, characterized by excessive leverage in the system, an overabundance of companies in trouble, and no lender of last resort. Today, it is again in the hands of a few capable and well-capitalized entities to come up with systemic solutions and aid the sector. As one of the few companies in a position to help distressed industry participants, Nexo takes this responsibility with the utmost seriousness and has retained the advisory services of two major Wall Street banks to receive best-in-class advice on several acquisitions and liquidity provision options currently underway.” it said.
Earlier this week, following a market turmoil, the Indian crypto exchange, Vauld, suspended trading, deposits, and withdrawals on its platform.
The firm, in a blog statement, cited financial challenges amid the market’s recent bear turn, stating that “it is “facing financial challenges.”
Vauld, however, is not the only one in this situation as several crypto firms have reported issues of liquidation, layoffs, and withdrawal freeze, amidst what experts term the “crypto winter.
