China Food Investment (CFI), a health and agricultural biotech enterprise, has agreed to list its shares in the US via a merger with a special purpose acquisition company (SPAC) that values the combined entity at $523 million.
The Nasdaq-listed SPAC, Iron Horse Acquisitions, said on Wednesday it will buy all of CFI’s equity from its current parent, Rosy Sea Holdings.
SPACs, or blank-cheque companies, offer an alternative way for firms to go public and had gained popularity in 2020, but interest has declined due to stricter regulations and economic challenges.
Last month, investment firm Linqto terminated its $700-million deal to merge with black-check company Blockchain Coinvestors Acquisition Corp to go public.
CFI focuses on the production and sale of health and agricultural biotechnology food products through subsidiaries in Hong Kong and Mainland China. The deal is expected to close in the first quarter of 2025.
Reuters