Joby Aviation takes flight into the public markets via a SPAC merger
Joby Aviation will become a public entity in a partnership with Reinvent Technology Partners, a special-purpose purchasing company of renowned businessman and LinkedIn co-founder Reid Hoffman, which has spent more than a decade designing commuter all-electric, vertical takeoff and landing aircraft.
The joint venture listed on the New York Stock Exchange has an implicit pro forma appraisal of 6.6 billion dollars.
By way of the contract, Joby is receiving $1,6 billion in cash – $690 million from the confidence of Reinvent, and $835 million from private investors The Baupost Group, BlackRock's, Fidelity Management & Analysis LLC's, and Baillie Gifford's funds and accounts.
Uber would now translate a convertible bond of $75 million into common stock for $10 per share value.
Though SPAC normally arranges to stop large shareholders pulling out their capital, this merger brings the shares of founder JoeBen Bevirt up to five years into a long-term lockout.
The agreement also involves a completely vested earnings structure that cannot be carried out until the stock price hits 50 percent per share, which means a market capitalisation of over 30 billion dollars.
Joby aims to capitalize on the arrival of passenger service to commence in 2024.
The company also has to complete its aircraft registration and build production facilities, but these are in development.
With a reported offer for Joby Aviation, electric airplanes are growing to $10B
Joby negotiated with the Federal Aviation Administration on a "G-1" certification basis for its aircraft, stating condition that the aircraft of Joby had to be approved for commercial operations.
Joby is also preparing to start constructing a development plant of 450,000 square feet, built in collaboration with Toyota, later this year.
Joby had attracted interest and investors over the years as it established its eVTOL until it hit its SPAC contract.
In January 2020 Toyota became a significant sponsor and investor and led a $620 million Series C funding round.
Nearly a year later, as part of a dynamic transaction, Joby bought Uber's air taxi moonshot Elévate.
According to these words, Uber discharged Elevate to Joby Aviation and spent $75 million in the startup.
Both organizations have since extended their current relationship.
In addition to a previously undisclosed $50 million investment conducted by Uber as part of Joby's Series C funding round, 75 million dollars was spent.
Uber invested in the startup a total of $125 million.
Until announcing the offer to become a publicly traded firm, Joby Aviation received $820 million.
Uber sells air taxi to Joby Aviation, shedding his final moonshot