eVTOL News: Experience Investment (EXPC) Stock Gets a Lift From Blade SPAC Merger News

News of a merger between Blade and special purpose acquisition (SPAC) company Experience Investment (NASDAQ:EXPC) has EXPC stock on the rise Tuesday.

The letters "M&A" on a wooden table, surrounded by a calculator and other business items.
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Here’s what investors need to know about the SPAC merger between Blade and Experience Investment.

  • Starting off, the merger will result in the newly-combined company taking on the Blade name.
  • It will also result in shares of EXPC stock continuing to trade on the Nasdaq Exchange.
  • It’s likely that the new combined will change EXPC stock over to a different ticker, but it hasn’t announced one yet.
  • The SPAC merger implies a pro forma equity value of $825 million for Blade once the deal is complete.
  • Blade will have $400 million in cash to work with once the deal closes.
  • That comes from $275 million in cash held in trust by Experience Investment.
  • The remaining $125 million comes from a private investment in public equity (PIPE).
  •  Both companies’ Boards of Directors have given their unanimous approval to the deal.
  • Now it just needs approval from EXPC and Blade shareholders, as well as completing other customary closing conditions.
  • So long as there is no trouble along the way, the two companies expect the deal to close in the first half of 2021.
  • Blade is a company focused on the creation of Electric Vertical Take-Off and Landing (eVTOL) transportation routes.
  • It currently uses helicopters to offer quick transportation to people in urban areas.
  • However, it plans to switch over to eVTOL once they are ready.
  • This has it charging various rates to customers that are looking to move swiftly through cities and void the wait time that comes with ground-based transportation.
  • The urban air mobility market is expected to reach $125 billion by 2025 and increase to $650 billion over the next 10 years.

EXPC stock was up 7.3% as of Tuesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/evtol-news-experience-investment-expc-stock-gets-a-lift-from-blade-spac-merger-news/.

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