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African Agriculture, a company focused on food security, is nearing a deal to go public through a merger with 10X Capital Venture Acquisition Corp II, a blank-check firm, according to people with knowledge of the matter.

The combined entity is set to be valued at about US$450 million, said the people, who requested anonymity discussing private information. A transaction could be announced as soon as this week, assuming talks don’t fall apart at the last minute.

New York-based African Agriculture, led by Chief Executive Officer Alan Kessler, in March filed initial public offering paperwork with the US Securities and Exchange Commission. The company has operations in Senegal and farmland in Niger, where it is focused on the production of alfalfa which it describes as the “world’s largest vegetation-based protein source.” 

The company intends to sell alfalfa to African cattle owners, as well as to Saudi Arabia, the United Arab Emirates and Europe, the IPO filing shows.

Representatives for the 10X SPAC and African Agriculture declined to comment.

The 10X SPAC, led by Chairman and CEO Hans Thomas, earlier this year terminated a deal with Prime Blockchain Inc. It raised US$200 million in an August 2021 initial public offering, Bloomberg data shows. – Bloomberg