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Urban air mobility company Joby Aviation is the latest company in the growing industry going public via a SPAC.
The deal values the company at a post money valuation of $6.6 billion.
Gross proceeds of $1.6 billion for Joby Aviation are expected to fund the company's commercial operations.
Hoffman is set to join the board of directors of Joby Aviation as part of the merger agreement.
Founder shares will have up to a five-year lockup period before they can be sold.
About Joby Aviation: Operating in the electric vertical takeoff and landing aircraft market, Joby Aviation has done over 1,000 test flights over the last 10 years.
The company’s eVTOL aircraft has a pilot and can transport four passengers, with commercial passenger service planned to launch in 2024.
Joby’s eVTOL can travel around 150 miles and hit speeds of up to 200 miles per hour.
The company is targeting high urban traffic areas with flights that would cost the same amount as a ground-based taxi. The target cities in the United States the company named in its presentation are Chicago, New York City, Dallas, Washington, D.C., Miami, Los Angeles and San Francisco.
Joby Aviation is vertically integrated, with manufacturing and operational controls in place.
Joby's Growth Forecast: In January 2021, Joby Aviation purchased Uber Elevate, the eVTOL segment from Uber Technologies.
Joby said it will work alongside Uber to partner on a U.S. launch. Joby Aviation flights are expected appear in the Uber app on a non-exclusive basis in the future.
Joby Aviation received military flight release in 2020, which could lead to the company being a partner on military short flights in the future.
The company joins other eVTOL companies like Blade, which is going public with Experience Investment Corp (NASDAQ: EXPC), and Archer, which is going public with Atlast Crest Investment Corp (NYSE: ACIC).
Joby's Financials: Joby Aviation has $400 million in existing contracts and an estimated $120 million in potential deals in progress.
The company is forecasting revenue of $131 million in fiscal 2024 with a presence in one city. The company sees revenue hitting $721 million in fiscal 2025 with a presence in two cities.
In the next 10 years, Joby Aviation plans on having over 14,000 vehicles, $20 billion in revenue and flights offered in 20 cities worldwide.
RTP Price Action: Shares of Reinvent Technology Partners closed Wednesday's session up 4.02% at $13.46.
Disclosure: Author is long shares RTP.
Photo courtesy of Joby Aviation.
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