Breeze Holdings Acquisition today announced a definitive agreement to merge with TV Ammo, a technology manufacturing company aimed at disrupting the global ammunition industry.
If approved, Breeze Holdings will be renamed True Velocity and trade on the Nasdaq.
Under the terms of the business combination agreement, a wholly owned subsidiary of Breeze will merge with and into TV Ammo, with TV Ammo surviving as a wholly owned subsidiary of Breeze. Assuming no redemptions, the combined company will have an estimated post-transaction enterprise value of $1.21 billion, consisting of an equity value of $1.24 billion, $76.8 million in cash and $50 million in debt.
Cash proceeds raised will consist of Breeze Holdings’ $17.7 million cash in trust (before redemptions and payment of any transaction expenses) and $100 million in anticipated new capital, expected to be split between debt and equity.
True Velocity and outdoor gear retailer Bass Pro yesterday entered a 3- to 5-year strategic partnership through which True Velocity will sell its ammunition across all channels within Bass Pro, according to a press release. The initial companywide order will place True Velocity products in 127 Bass Pro locations this quarter.
Breeze in August terminated a deal with satellite company D-Orbit. The SPAC originally raised $100 million in a November 2020 IPO with plans to target natural gas and crude oil companies. Share redemptions ahead of deadline extensions have eroded the SPAC’s cash in trust since then. Read more.
