Sparks Energy Accused of Wrongly Walking Away From SPAC Merger

Sparks Energy Inc. is facing litigation in Delaware over claims that it’s wrongfully trying to call off its blank-check merger with a special purpose acquisition company backed by 10X Capital.

The venture capital firm’s third SPAC, 10X Capital Venture Acquisition Corp. III, sued Sparks on Monday, accusing it of halting its efforts to implement the transaction after adopting the baseless position that the planned combination doesn’t reflect a valid merger agreement.

When 10X notified Sparks that its stance constituted willful breach of contract, the energy infrastructure company “provided no response” other than to continuing insisting “that it is not bound ...