Surf Air Mobility To Go Public Via $1.42 Bln SPAC Deal

Surf Air Mobility Inc. announced Wednesday its plan to go public via a business combination with Tuscan Holdings Corp. II (THAC), a publicly listed special purpose acquisition company. The proposed transaction reflects an implied pro forma equity value of $1.42 billion, assuming full payment of earnout.

The transaction will deliver approximately $467 million in gross cash proceeds to the combined company. This includes committed capital from strategic and financial investors including iHeartMedia, and Partners For Growth, and an equity line from Global Emerging Markets (GEM), as well as from THCA's cash in trust.

The Boards of Directors of both Surf Air Mobility and Tuscan have unanimously approved the proposed business combination, which is expected to be completed in the second half of 2022, subject to, among other things, the approval by Tuscan's stockholders and and the receipt of required approvals to publicly list the securities of the combined company.

The acquisition of Southern Airways Corp., also announced today, and the completion of the business combination with THCA positions Surf Air Mobility to be a leader in the electrification of commercial aviation, providing it with resources necessary to bring electrified powertrain technology to market and expanding and electrifying regional consumer scheduled and charter flight services.

The merger with Southern Airways, along with its affiliated brand, Mokulele Airlines, will enable the combined companies to create a national air travel platform and to accelerate efforts to commercialize hybrid electric aircraft.

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