- Majic Wheels (OTCPK:MJWL) said Wednesday it will merge with SPAC OceanTech Acquisitions I (OTEC) in a deal valued at ~$200M (20M shares).
- OceanTech (OTEC) and Majic Wheels (OTCPK:MJWL) also entered into a forward share purchase deal for up to $40M committed backstop by Meteora Capital Partners.
- The combined company can receive up to $106.1M in cash held in trust by OceanTech (OTEC), which will include the guaranteed backstop arrangement for the trust.
- On closing, OceanTech will be renamed Majic and expects to remain listed on Nasdaq under the ticker "MJWL" with a combined business value of ~$333.4M on signing of the deal.
- The deal includes up to $500M earn-out consideration (50M shares) on certain triggering events over the next three years based on the combined firm's future revenue.
- The business combination is expected to be completed in H1 2023.