Financials Acquisition Corp terminates merger with London Innovation Underwriters

Financials Acquisition Corp, a special purpose acquisition company, announced that it has terminated its agreement to merge with London Innovation Underwriters.

LIU was established by Financials Acquisition Corp to operate in the insurance-linked securities space, and it planned to raise at least £150 million and up to £300 million. Now, the company is terminating the deal with the newly created entity after receiving insufficient commitments to meet the minimum £150 million target.

“Whilst fundamental support for the Business Combination was strong, with interest expressed from a globally and stylistically diverse set of investors, the level of demand has been insufficient to reach the Minimum Cash Condition. The company continues to believe that it offers an optimised structure for accessing the Lloyd’s of London insurance market in a capital, cost and fiscally efficient way, however, given the volatile capital markets, it has proven too difficult to fund this through a public offering,” the company stated. “Consequently, the company proposes to cease operations, other than for the purpose of returning funds to shareholders and conducting an orderly winding up of the company.”

Financials Acquisition Corp was launched in 2022 by William Allen and Andrew Rear.