Reinvent Technology Partners (NYSE: RTP) declared that it has signed a merger agreement with a transportation firm, Joby Aviation. After the execution of the deal, the merged firm will have the name Joby Aviation and will commence trading on NYSE and become a publicly trading company.
Joby Aviation has completed nearly 1,000 test flights over the last ten years and because of this, it has gained a reputation in the aerial ride-sharing industry. Joby Aviation is the first to agree to a certification basis for an eVTOL aircraft in 2020 with FAA. Furthermore, it has also got the safety authorization for eVTOL aircraft from US Air Force.
Joby Aviation is planning to modernize how people travel by unraveling the chance to overtake sustainably over the traffic jam below. This can only be done by the four-passenger aircraft of the firm which is also emissions-free. This aircraft of the firm has the ability to travel up to 150 miles at speeds up to 200 miles per hour.
The firm is planning to use the profit from the business for the general purposes of the business and the certification of the aircraft, etc. Joby Aviation has always focused on bringing the best technology to the market. Furthermore, the LinkedIn Co-Founder Reid Hoffman enters the Board of the merged firm. The news of the merger sends the Reinvent stocks soaring as the firm has gained +0.37 at the time of writing on Wednesday.
Joby Aviation is also planning to introduce commercial operations in the US in 2024. It will get $690 million profit from Reinvent at the time of execution of the deal. Moreover, it will also get an $835 million private arrangement of common stock at a $10.00 per share value and will also transform a $75 million convertible note into common stock at a $10.00 per share value.