Reinvent Technology (NYSE:RTP) stock is up on Wednesday following news that the special purpose acquisition company (SPAC) plans to merge with Joby Aviation.
Starting off, potential investors should know that Joby Aviation is a transportation company currently developing an all-electric, verticle take-off and landing aircraft. The company plans to have it ready for commercial use in 2024.
The SPAC merger will have the combined company operating under the name Joby Aviation name. This will also see its shares listed on the New York Stock Exchange and replace the current RTP stock ticker. However, the new ticker isn’t revealed in today’s press release.
The SPAC merger between Reinvent Technology and Joby Aviation implies a market capitalization of $6.6 billion for the combined company. It will also include $690 million in proceeds from a combination of cash held in trust by RTP and a private investment in public equity (PIPE).
JoeBen Bevirt, founder and CEO of Joby Aviation, said this about the news that has RTP stock up today.
“For the last decade, we have been laser-focused on one task – developing the best possible technology for this market. But our long-term vision has always been to build a global passenger service, helping a billion people to save an hour every day, while contributing to the protection of our precious planet. Today’s transaction lets us look ahead to the next decade and provides us with the resources we need to bring our vision to life.”
The deal has the full support from both companies’ Boards of Directors. It now just needs approval from shareholders and regulators. This has the two companies expecting it to close by the end of Q2 2021.
RTP stock was soaring higher in early trading Wednesday morning but is now only up roughly 2%.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.