FINANCIALS Acquisition Corp said it would enter liquidation as it scraps a planned merger with its newly formed insurance venture, citing "insufficient" cash commitments due to volatile capital markets.

The special purpose acquisition company (SPAC) had unveiled plans to combine with London Innovation Underwriters (LIU) and raise additional funds to deploy in the Lloyd's of London insurance market.

A shareholder meeting that had been planned for 14 November to approve the tie-up has been cancelled, the company said.

The SPAC has an end of year deadline to use funds raised for a takeover, and said it would not seek an extension.

"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 said in a statement.

"In order to ensure due payment of creditors, the Company proposes to appoint a liquidator as soon as practicable to administer the winding up of operation." Reuters

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