Arrowroot Acquisition filed an S-4 detailing its proposed business combination with iLearningEngines, which develops AI-powered learning automation and information intelligence for corporate and educational use.
The deal was announced in April at a pro forma implied enterprise value of $1.4 billion.
The agreement includes a minimum cash requirement of $100 million. The combined entity will receive approximately $43 million from Arrowroot’s trust, assuming no redemptions. iLearningEngines will receive proceeds of a private convertible offering with participation from the SPAC’s sponsor Arrowroot Capital and other institutional investors, according to the S-4. PIPE and debt financing is also anticipated, although details have not yet been released.
iLearningEngines is also working to raise additional capital via institutional investors.
Arrowroot raised $250 million in a February 2021 IPO although redemptions have eroded the trust significantly since then. Read more.
