The special purpose acquisition company (SPAC) TKB Critical Technologies 1 (TKB) has terminated its merger agreement with the publicly listed mobility data provider Wejo, which was expected to close in Q2 2023. This is largely due to Wejo's recent financial troubles and the intent to enter administration in the UK.

Wejo entered the merger agreement with TKB in January, anticipating generating gross proceeds of up to USD 100 million. 

The decision to terminate the agreement has been mutual; hence, neither party is expected to pay a termination fee under the agreement.

Analyst QuickTake: Wejo is facing several setbacks and was delisted from Nasdaq earlier this month following its announcement to enter administration in the UK. The termination of the deal would add to its financial challenges as the company would now lose the much-needed proceeds it would have received had the merger pulled through. Previously , the company has also acknowledged the need for significant additional capital to fund its operations till mid-2024 and was actively exploring various options, including the sale of equity and debt financing.