Innovative International Acquisition and Zoomcar announced the closing of their business combination.
Newly renamed Zoomcar Holdings begins trading today on the Nasdaq under the ticker symbol ZCAR for stock and ZCARW for warrants.
Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a marketplace for car sharing focused on emerging markets. The Zoomcar community connects hosts with guests, who choose from a selection of cars for use at affordable prices, promoting sustainable, smart transportation solutions in growing markets.
The SPAC’s shareholders approved the deal Dec. 19. At the time, Innovative International said 2,413,764 shares, representing 98.7% of all remaining outstanding public shares, were redeemed. Total redemptions since the SPAC’s $200 million IPO in October 2021 amount to 99.9% of the shares outstanding. That left Innovative International with about $350,000 in trust.
Innovative International earlier this month said it entered into a subscription agreement with Ananda Trust, an affiliate of the SPAC’s sponsor, to sell 1,666,666 shares at $3 each, for almost $5 million to support the Zoomcar deal.
Separately, the SPAC disclosed in an 8-K that it entered into a non-redemption agreement with three Meteora funds, which agreed to reverse the redemption of 150,000 Class A shares.
Additionally, the SPAC’s underwriters Cantor and J.V.B., in consideration of redemption levels and other factors, entered into a fee modification agreement. Cantor and J.V.B. agreed to accept 1.2 million shares in lieu of payment of the deferred underwriting commission in cash at the merger closing. Cantor will receive 1 million shares and 200,000 shares shall be issued to J.V.B.
The deal had an implied pro forma enterprise value of approximately $456 million at announcement in October 2022.
Cohen & Company Capital Markets acted as exclusive financial advisor and exclusive capital markets advisor to Zoomcar; DLA Piper was legal advisor to Cohen & Company Capital Markets. Ellenoff Grossman & Schole was US legal advisor to Zoomcar. Lincoln International acted as financial advisor to the special committee of the board of directors of Innovative. Morris, Nichols, Arsht & Tunnell acted as legal advisor to the Special Committee. McDermott Will & Emery was US legal advisor to Innovative. Weinberg Zareh Malkin Price acted as US legal advisor to Ananda. Read more.
