Ammunition tech startup TV Ammo to go public in a $1.2 billion SPAC deal
After several months of drought, special purpose acquisition company (SPAC) deals appear to be gaining momentum once again. So far this year, SPAC deals account for 82 out of the 107 US initial public offerings (IPOs), according to data from the SPAC analytics firm, SPACAnalytics.com.
TV Ammo, an ammunition technology and composite manufacturing company, becomes the latest to join the SPAC craze following months of decline in the SPAC space due to the ongoing global economic turmoil, market volatility, and weak stock performance of merged companies.
Today, TV Ammo announced it will merge with SPAC (blank-check) firm Breeze Holdings Acquisition Corp in a deal that values the combined entity at $1.21 billion, the companies said on Tuesday.
As part of the agreement, a wholly-owned subsidiary of Breeze will merge with and into TV Ammo, with TV Ammo surviving as a wholly-owned subsidiary of Breeze. Upon closing, Breeze Holdings will be renamed True Velocity, Inc. and its common stock is expected to trade on the Nasdaq Capital Market.
The deal is expected to generate proceeds of about $76.8 million. The merger comes at a challenging time for the SPAC market in the U.S. as regulatory scrutiny tightens and amid high investor redemptions.
In a statement, Kevin Boscamp, Chairman and Co-CEO of True Velocity, said: “True Velocity was founded with the mission to revolutionize the global ammunition industry, providing customers with a technologically advanced cartridge that outperforms traditional brass-cased solutions.”
Boscamp added, “We believe that partnering with Breeze provides us with the financial resources and experienced partners necessary for us to accelerate our growth. I look forward to working closely with their team as we strive to execute our strategic objectives, drive attractive margins, and create long-term value for our customers and our shareholders.”
Sometimes called a blank-check company, SPAC is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC IPOs.
Just a few weeks ago, Malaysian payments tech startup Super Apps announced it was going public in the United States through a merger with a special purpose acquisition company (SPAC) with Technology & Telecommunication Acquisition Corporation in a deal that values the Malaysian payments technology firm at $1.1 billion.
Meanwhile, TV Ammo said it has approximately 300 patents pending or issued on its products, technology, and manufacturing processes.