Mobile commerce platform Rezolve to go public via $2 bln SPAC deal (updated)
17/12/2021 12:16
(Adds CEO quotes, use of funds, background)
By Manya Saini
Dec 17 (Reuters) - Mobile commerce platform Rezolve said on
Friday it will list in New York through a merger with a
blank-check firm backed by billionaire Betsy Cohen, in a deal
valuing the combined company at about $2 billion.
Rezolve joins a string of tech companies that have tapped
into public markets as their products and services, which cater
to the digital economy, see overwhelming demand due to a
fundamental shift in ways of doing business.
The company, founded in 2016 and based in London, offers its
customers a mobile shopping solution along with digital payments
and e-marketing products. It allows brands and over 150,000
merchants on its platform to convert media to an interactive
experience on mobile devices.
Funds from the deal will be used to enter new markets and
invest in research and development among other things,
co-founder and Chief Executive Officer Dan Wagner told Reuters
in an interview.
Blank check firms, or special purpose acquisition companies
(SPACs) are publicly listed shell companies that raise funds
with the intention of merging with a private company within two
years of floating its shares. The private company then goes
public through the merger.
"It's a fast route to this (going public)," Wagner said.
"They're popular for the sponsors because they can help provide
capital quickly to the company and set a valuation all in the
private domain outside of the public spotlight."
The deal with Armada Acquisition Corp I AACI.O will
provide Rezolve with up to $190 million in gross proceeds,
including $150 million from the SPAC's trust account and a $40
million private investment from Cohen and German billionaire
investor Christian Angermayer.
After the deal closes, Rezolve will list on the Nasdaq,
under the ticker symbol "ZONE".
(Reporting by Manya Saini and Sohini Podder in Bengaluru;
Editing by Shailesh Kuber)
((Manya.Saini@thomsonreuters.com;))