Tucson-based high-altitude balloon operator World View Enterprises plans to go public on the New York Stock Exchange by merging with an already listed company, in a deal that values the company at an estimated $350 million.
The deal with Leo Holdings Corp. II — a so-called “special purpose acquisition company” or SPAC — is expected to close in the second quarter and net the company up to an estimated $121 million.
SPACs, also known as blank-check companies, are set up specifically to acquire privately owned companies and take their stock public, avoiding the more rigorous process of an initial public offering.
The boards of World View and Leo both unanimously approved the transaction, which will require the approval of the stockholders of World View and the shareholders of Leo and is subject to other customary closing conditions, the companies said in a news release.
Based in Tucson at a building and launch-pad facility leased from Pima County, south of Tucson International Airport, World View has been making and flying proprietary, steerable balloon vehicles on research missions to the stratospheric heights of nearly 100,000 feet since 2017 and is taking reservations for manned, tourist flights it hopes to launch in 2024.
Upon closing of the transaction, the combined company will continue operating as World View, the companies said in a news release.
World View may receive up to $121 million in proceeds from the deal, assuming no shareholders elect to redeem their shares and after the effect of a planned $75 million financing deal to be raised by both parties, the companies said.
World View says it plans to use the new capital to expand its global remote-sensing business into new markets and industries, and continue developing its space tourism, research and education businesses.
Leo Holdings Corp. II, part of a group of SPACs, currently trades under the ticker symbol “LHC,” SPACs typically change their ticker after an acquisition is complete.
World View president and CEO Ryan Hartman called the deal a “major milestone” for World View.
“This merger with Leo allows us to scale our demonstrated expertise and strong foundation of strategic partnerships to meet the growing market demand for data and analytics from the stratosphere,” Hartman said in prepared remarks.
The new release cited World View’s strong national security, research and commercial strategic partnerships and agreements, near-term revenue potential, patent-protected technologies and strong management.
World View has flown more than 120 stratospheric flights and has provided remote sensing services to government and commercial organizations including NASA, the National Oceanic and Atmospheric Administration, the Air Force and Department of Defense, Sierra Nevada Corp. and Raytheon, the company said.
The company said it also has several active strategic partnerships and agreements in place, with partners including Sierra Nevada — a major aerospace and defense contractor — as well as ScepterAir/ExxonMobil and Infleqtion.
Tucson-based World View Enterprises plans to start flying tourists to the stratosphere in balloon vehicles by 2024. Video courtesy of World View.
