ROT Stock: 5 Things to Know About Rotor and the Sarcos Robotics SPAC Merger

Shares of Rotor Acquisition (NYSE:ROT) stock are slowly rising on Tuesday following news of the special purpose acquisition company’s (SPAC) merger with Sarcos Robotics.

Worker Wearing Advanced Full Body Powered exoskeleton, Lifts Heavy Pallet full of Cardboard Boxes

Source: Shutterstock

The Utah-based robot manufacturer will go public via a reverse merger with Rotor, and provides a major opportunity for Sarcos and its technology. In fact, according to the release, the merger is “expected to provide the company with up to $496 million of proceeds before expenses to fund business plans, facilitate potential bolt-on acquisitions, and enhance capabilities.”

One of its most well-known products is the fully robotic exoskeleton that a worker could wear to lift much heavier items with less strain on the body.

That said, what else should investors know about the ROT stock SPAC merger? Let’s take a closer look.

  • After the merger closes, the combined company is expected to trade on the Nasdaq Exchange under the ticker STRC.
  • The deal is anticipated to close in the third quarter of 2021.
  • In turn, Rotor and Sarcos will have a combined valuation of $1.3 billion, “plus a potential earnout of an additional $281 million based on the combined company’s future share trading price.”
  • The deal also received around $220 million in funding via a private investment in public equity (PIPE).
  • Some of the investors that chipped into that total include BlackRock (NYSE:BLK) and Palantir (NYSE:PLTR)

ROT Stock and the Sarcos SPAC Merger

Stefan M. Selig, chairman of Rotor Acquisition, said this regarding the ROT stock SPAC deal:

“We launched Rotor Acquisition Corp. with the goal of identifying and partnering with companies that are leveraging technology and innovation to disrupt ‘old-economy’ businesses in large and growing markets. Sarcos fits these criteria perfectly, and we are excited to partner with them and create value by building out the Sarcos platform and bringing the Company’s robotics technology to the global workforce.”

ROT stock was up 2% as of Tuesday morning.

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

Nick Clarkson is a web editor at InvestorPlace.

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