Utility vehicle electrification company Tembo, a subsidiary of VivoPower International, today announced an agreement to negotiate a business combination with Cactus Acquisition 1. If the deal is approved, the combined company is to list on the Nasdaq under the name Tembo Group.
The SPAC will issue 83.8 million shares in exchange for Tembo shares at $10 each share. This corresponds to a pre-money indicative equity valuation of Tembo of $838 million. Pending execution of a definitive agreement, the deal is targeted to close in August.
Cactus 1 had $25 million of cash on its balance sheet as of its last quarterly filing. The SPAC raised $126.5 million in an upsized IPO two years ago.
Cactus 1 has a November deadline to complete a deal.
Tembo’s electric utility vehicles are designed for fleet owners in the mining, agriculture, energy utilities, defence, police, government, humanitarian, and game safari industries.
Chardan Capital Markets is acting as financial advisor to VivoPower and Tembo.
