Volato announced today that it has entered into a business combination agreement with PROOF Acquisition I at a pro forma enterprise value of $261.1 million.
If approved, Volato is expected to trade under the ticker symbol SOAR.
The target is an Atlanta-based platform for fractional ownership of private jets.
Current Volato owners will retain approximately 63.5% of the ownership at close.
Separate from the proposed merger, Volato also announced the initial closing of a Series A preferred equity funding round by the PROOF venture funds totalling $10 million, which was completed in July. In connection with that financing, $38 million of previously raised outstanding convertible notes in Volato were converted into Series A preferred equity. Upon completion of the merger, all Series A preferred equity would be converted into common equity.
Proceeds from the raise will be used to fund Volato’s working capital needs, including deposits for future aircraft deliveries.
PROOF Acquisition I shareholders in May approved a deadline extension up to Dec. 3. However, redemptions of just over $222 million took a massive bite out of the trust. The SPAC raised $240 million in a December 2021 IPO.
The press release announcing the Volato deal did not disclose the financial details for the transaction. Read more.
