Robinson Aircraft, an innovative British Columbia-based company operating under the name Horizon Aircraft, is set to revolutionise the electric vertical take-off and landing (eVTOL) aircraft sector. Pono Capital Three, a distinguished special purpose acquisition company (SPAC), has announced a definitive Business Combination Agreement that will see Horizon Aircraft amalgamate with Pono Three Merger Sub, Inc., a wholly owned subsidiary of Pono. The resulting entity will operate as a wholly owned subsidiary of Pono, soon to be rebranded as Horizon Aircraft Ltd (or such other name as may be determined by the company). This strategic move aims to solidify Horizon Aircraft's global dominance in the eVTOL technology space.
Leveraging Horizon Aircraft's versatile technology, which has garnered international recognition and funding support from entities like the U.S. Department of Defence and various Canadian grants, this business combination is poised to thrust the company into a pioneering role within the burgeoning eVTOL industry. Notably, the Canadian government's recent commitment of CA$350 million towards sustainable aviation further underscores the significance of this collaboration.
With the Urban Air Mobility (UAM) market projected to exceed US$30 billion in revenue by 2031, boasting a compound annual growth rate (CAGR) surpassing 30%, the timing for Horizon Aircraft's expansion couldn't be more auspicious.
The transaction places a CA$96 million valuation on Horizon Aircraft, leading to an estimated combined pro forma equity value of around CA$216 million before expenses, assuming no redemptions during the business combination. Facilitating this deal is a Forward Purchase Agreement with Meteora Capital, ensuring seamless financial support. The capital raised, once redemptions are settled and transaction expenses accounted for, will fuel the continued development of the flagship hybrid electric eVTOL, the Cavorite X7, in addition to supporting general operational needs.
“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, CEO of 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.”
Both the boards of directors at Horizon Aircraft and Pono have provided unanimous endorsement for the business combination agreement and its associated transactions. For finalisation, the approval of Pono stockholders and Horizon Aircraft's shareholders, coupled with customary closing conditions, are requisite. With the anticipation that these conditions will be met, the transaction is on track to conclude in either the fourth quarter of 2023 or the first quarter of 2024. This collaboration heralds a new era in eVTOL technology and sustainable aviation solutions on a global scale. (£1.00 = US$1.27 / CA$1.72 at time of publication).
