Deep Medicine Acquisition and TruGolf, a golf simulator manufacturer and distributor, announced that they have entered a definitive merger agreement at an implied enterprise value for TruGolf of $125 million. The amount includes up to approximately $45 million of contingent consideration if certain milestones are met.
The transaction consideration will be paid in newly issued shares of common stock of DMAQ.
If approved by the SPAC’s shareholders, upon completion of the deal TruGolf will list on the Nasdaq under the symbol TRUG.
The target manufactures and sells a line of golf simulator equipment, including software and hardware, and is currently developing a new line of next-generation golf simulator products that aims to revolutionize the virtual golf experience, according to a press release announcing the deal.
Assuming no redemptions, the combined company is expected to have a total pro forma equity value of approximately $134.1 million.
TruGolf expects to use the transaction proceeds to fund the development and production of its software and hardware business, with sales expected to increase as its new generation software and hardware is launched. The company also plans to use a portion of the proceeds to expand its manufacturing capabilities in Salt Lake City.
Deep Medicine in September terminated a merger agreement with China-based Chijet Motor Company.
The SPAC raised $110 million in an October 2021 IPO with initial plans to focus on targets in the healthcare industry with an enterprise value of approximately $500 million to $1 billion.
The SPAC’s deadline is coming up April 29. Read more.
