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On Thursday, SPAC Direct Selling Acquisition (NYSE: DSAQ) revealed plans for a definitive merger with Hunch Mobility, a company that offers “By-The-Seat” short-distance air mobility services in India.
The combined entity is anticipated to have an approximate post-transaction enterprise value of $223 million, assuming no redemptions by DSAQ’s public stockholders.
Proceeds from the business combination will include up to $63 million of cash from DSAQ’s trust account before redemptions, with around $48 million in net cash on the balance sheet allocated for future growth.
The resulting company is projected to be named Hunch Technologies, with Hunch Mobility retaining a 52% ownership stake. Its common shares are set to be listed on the New York Stock Exchange under the symbol “HNCH”.
Additionally, the transaction encompasses capital commitments of $20 million from DSAQ’s sponsor, which incorporates $10 million of equity purchases in DSAQ and $3 million in the form of promissory notes, among others.
Hunch Mobility has executed more than 1,626 flights, boasting an exceptional approximately 43% repeat flying rate, and has initiated its services in two Indian states: Maharashtra and Karnataka.
Both DSAQ and Hunch Mobility’s respective boards have unanimously sanctioned the merger, which is anticipated to be completed by 2024.
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