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