Kernel Group Holdings in an 8-K today filed an investor presentation highlighting its proposed merger with aerospace and defense company AIRO.
Announced earlier this month, the deal has a pro forma enterprise value of approximately $847 million, assuming no redemptions by Kernel stockholders.
Kernel has signed an agreement for an up to 7.7 million-share backstop with Meteora. The proposed transaction also includes a contingent earnout payable to the AIRO stockholders and the sponsor.
The deal is expected to be completed in the third quarter.
Kernel in January announced a buyout of the original sponsors, placing the SPAC under new management.
At such time as Kernel might complete a deal, the new sponsor agreed to give 2 million Class B shares to equity holders of the original sponsor. Additionally, the new sponsor and management agreed to pay each of the initial sponsor founders $250,000 and convey 125,000 Class B shares to each for advisor fees.
Kernel in June 2021 was reportedly in talks about doing a $1 billion deal with Infarm, an Amsterdam-based startup focused on indoor and urban farming. However, those discussions proved fruitless.
Kernel raised $265 million in a February 2021 IPO. Read more.
