Stratospheric balloon corporate Global View to head public in $350M SPAC deal • TechCrunch

Global View, a startup growing stratospheric balloons for Earth statement and tourism, is heading to the general public markets. The corporate introduced Friday that it will merge with particular function acquisition corporate (SPAC) Leo Holdings Corp. II in a deal value $350 million, because the startup seeks to construct out what it calls “the stratospheric economic system.”

The deal, which is anticipated to near in the second one quarter of this yr, will give you the blended corporate with as much as $121 million in gross proceeds, plus an possibility to go into into further fairness financing agreements for as much as $75 million. The $121 million determine is assuming no shareholder redemptions, on the other hand, and as we’ve observed with some area SPACs prior to now – particularly Virgin Orbit, which we coated previous this week – an sudden collection of redemptions can every now and then enormously devour into that determine.

Tucson, Arizona-based Global View says its stratospheric far flung sensing balloons be offering explicit advantages over conventional satellites. The corporate’s far flung sensing balloon methods – which it calls Stratollites – can fly at altitudes as much as 29 kilometes (95,000 ft), and Global View says they may sooner or later serve verticals from protection to agriculture.

That isn’t the one use case for the balloons, as Global View sees it. In 2021, the corporate additionally introduced its purpose to release a tourism trade the usage of the balloons. Global View says greater than 1,200 other people have reserved their position in line for a stratospheric balloon flight; the $500 deposit bureaucracy only a fraction of the $50,000 price tag value. Every travel will final between 6-8 hours.

Global View has raised $48.9 million to this point, in keeping with Crunchbase, with its most up-to-date investment spherical remaining in 2018. Ultimate November, the corporate introduced a partnership with Sierra Nevada Corp. to collectively perform balloons for cover intelligence, surveillance and reconnaissance. The similar month, Global View introduced a separate settlement with atmospheric tracking corporate Scepter Inc. to measure methane ranges in Texas’ Permian Basin.

SPACs have turn out to be a well-liked car for personal firms taking a look to go into public markets out of doors the standard IPO procedure, and get a big injection of money within the procedure. Primary area avid gamers together with Rocket Lab and Planet Labs have all finished SPAC transactions over the last two years. Whilst some firms – like the 2 I simply discussed – had been fairing beautiful smartly at the public markets, area SPACs usually have badly underperformed, in particular relative to legacy aerospace firms, with a handful of businesses seeing a dire drop in inventory value.

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