Horizon Aircraft is about to become a publicly traded company on the US Nasdaq stock market by early 2024 with the execution of a definitive business combination agreement Pono Capital Three, a special purpose acquisition company (Pono). Post the merger Horizon Aircraft will amalgamate with Pono Three Merger Sub a wholly owned subsidiary of Pono, with the resulting combined company continuing as a wholly owned subsidiary of Pono.
The transaction values Horizon Aircraft at $96 million, which is expected to result in a combined pro forma equity value of approximately $216 million before expenses, assuming no redemptions in the business combination. The cash proceeds raised in the transaction, after any redemptions and payment of transaction expenses, are anticipated to be used for the further development of the Cavorite X7, Horizon Aircraft’s flagship hybrid electric eVTOL, and for general company operating purposes.
The boards of directors of Horizon Aircraft and Pono have unanimously approved the agreement and the proposed transactions. The closing of the business combination and related transactions are subject to approval by Pono stockholders and Horizon Aircraft’s shareholders, and are also subject to other customary closing conditions.
It is currently expected that the transaction will close in the fourth quarter of 2023 or the first quarter of 2024.
Pono and Horizon Aircraft believe that this deal will elevate Horizon Aircraft’s business to better position in eVTOL aircraft technology.
“Our unique hybrid electric VTOL concept is based on patented ducted fan-in-wing technology that allows our aircraft to fly faster, farther, and carry more payload than many of our competitors,” said Brandon Robinson, chief executive, Horizon Aircraft. “We designed the X7 with safety, durability, and operational versatility in mind. The combination of high performance, a tough design, and positive economics has resonated with potential customers. We have received significant interest for its use in a broad number of mission specific tasks such as emergency medical services, aerial firefighting, disaster relief, and various military special operations.”
“Horizon Aircraft’s hybrid electric eVTOL flies 98% of its mission exactly like a normal aircraft and can recharge itself during flight or after its mission,” said Davin Kazama, chief executive, Pono. “In addition to obvious performance and safety benefits, this should also simplify the certification process. Ultimately this aircraft will help to redefine the way people and goods are moved at the regional scale, and we are excited to be part of building a better future with Horizon Aircraft.”
Recently, Canadian government pledged $350 million to Horizon Aircraft to support the country’s sustainable aviation industry.