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Bannix Acquisition Corp. (BNIX) Signs $543M LOI with EVIE Autonomous
by Nicholas Alan Clayton on 2023-04-21 at 9:47am
Bannix Acquisition Corp. (NASDAQ:BNIX) announced this morning that it has entered into a binding letter of intent to combine with autonomous vehicle company EVIE at a proposed enterprise value of $542.5 million.
Staffordshire, UK-based EVIE’s pod-shaped autonomous vehicles have transported about 6.3 million people at London’s Heathrow Airport and logged about 5.5 million kilometers (3.4 million miles) in commercial service.
The LOI sets up a period during which Bannix will engage in due diligence beginning May 2 along with payments by EVIE to the SPAC. If a definitive agreement is not finalized by May 30 then the payments will end and presumably the LOI will peter out.
EVIE is required to pay Bannix £130,000 ($161,245) in a promissory note on April 19 and a further £70,000 ($86,820) on May 12. If the parties get a DA signed, then EVIE is to provide notes for £150,000 ($186,115) on July 30 and up to £400,000 ($496,300) more to meet other working capital requirements through the listing process.
These amounts will be repaid if the transaction fails to close and will be repaid in shares if Bannix lacks sufficient cash for this. Although the LOI is “binding,” Bannix will remain in SPACInsider‘s “Searching” column until a definitive agreement to combine is announced.
Bannix currently has about $30.5 million in its trust. If it were to face no further redemptions, these shares combined with the sponsor’s 2,524,000 promote shares would represent a 9.2% stake in the combined company under the proposed LOI structure.
EVIE shareholders would meanwhile be issued 50,000,000 shares as consideration, and its acquisition target GTCH(Apollo) would receive 4,250,000 shares for stakes of 83.7% and 7.1%, respectively.
