Today, another special purpose acquisition company is looking to take flight. This time it is Experience Investment (NASDAQ:EXPC), a previously under-the-radar SPAC from KSL Capital. So what do you need to know about EXPC stock? And what makes this SPAC merger news so exciting?
To start, what is the big news? Well, today investors learned that Experience Investment will bring Blade Urban Air Mobility to the public markets. This SPAC merger will create the very first publicly traded global air mobility firm. And importantly, Experience Investment brings with itself the backing of KSL Capital, a private equity firm specializing in travel and leisure.
With that in mind, here are 13 things to know about EXPC stock and the Blade SPAC merger:
- Experience Investment first came public in September 2019.
- At the time, it raised $250 million by offering 25 million units at $10 each.
- Importantly, Experience Investment has the leadership of a team from KSC Capital.
- This is fitting, especially as the blank-check company identified early on that it wanted to focus on acquiring a business in the travel and leisure space.
- For investors, this is where the Blade SPAC merger comes in for EXPC stock.
- Today, investors learned that Experience Investment will bring Blade Urban Air Mobility public.
- Blade has been around since 2014, and bills itself as a helicopter taxi company.
- It started its life offering short-distance helicopter trips for $1,000 a ride.
- Now, it offers private jet trips to and from places like Westchester, Aspen and Miami.
- Essentially, Blade wants to make private jet and helicopter rides more accessible, creating a middle offering between first-class airline tickets and $20,000 private flights.
- One account positions Blade as the “black car” service of the skies.
- The Blade SPAC merger will result in a valuation of $825 million.
- Additionally, Blade will see proceeds of $400 million.
EXPC Stock and the Blade SPAC Merger
So why does the Blade SPAC Merger really matter? And what should investors do with EXPC stock? Importantly, investors will note that EXPC did not see a major move on Tuesday. In fact, shares closed out the regular trading day slightly higher. This means it may be worth waiting to see if Experience Investment catches more eyes in the coming days.
But beyond that, there is reason for investors to pay attention here. Blade Urban Air Mobility represents something very different than other recent SPAC targets. Essentially, it offers something completely different in the transportation market. And with many experts betting on the future of transportation, there is no reason to believe that fleets of helicopter taxis will not be a larger part of that future. This is especially true thanks to KSL Capital. Investors should note that KSL owns Ross Aviation, a fixed-base operator with locations at 14 airports. Ross is not formally tied up in the Blade SPAC merger, but Axios suggests it could help Blade build out its airport infrastructure.
Additionally, Blade is moving into the world of electric vehicles. This is where the real potential magic comes in. Investors love everything electric, especially now that battery advancements from QuantumScape (NYSE:QS) and its peers mean electric planes and helicopters are more feasible. With this in mind, Blade says it is planning to use some of the SPAC proceeds to embrace electric helicopters.
Keep an eye on EXPC stock and the Blade SPAC merger. Shares could take off any day.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.