- Fortune Rise Acquisition (FRLAU) said Monday it will acquire VCV Power Sigma and VCV Power Gamma, or VCV Digital Technology.
- The combined firm is expected to have a combined implied initial pro forma equity value of ~$381.4M, translating into an enterprise value of ~$294.1M.
- The proposed business combination is expected to provide ~$99.7M in gross proceeds from the cash held in trust by FRLA, assuming no redemptions of its shares.
- At closing, ~24.5M shares of Fortune Rise representing the initial merger consideration and 9.8M shares representing the earnout consideration will be issued to Sigma and Gamma stockholders at the redemption price of ~$10.20/share.
- All existing VCV Digital Technology stockholders are rolling 100% of their equity into the combined firm.
- On closing, the combined firm is expected to operate under the name "VCV Digital Technology" and remain listed on the Nasdaq under the ticker "XVC".
- The business combination is expected to close in Q3.