DJ Blank-Check Company SOAR Technology Acquisition Corp. Files for IPO
By Maria Armental
Joe Poulin, who as a teenager founded Luxury Retreats International (now part of Airbnb Inc.), joined the wave of "SPACs" seeking to raise money in the public markets for potential investments.
Mr. Poulin, who now manages his family office JPK Capital through which he's made early investments in start-up companies like DraftKings Inc. and Palantir Technologies Inc., is the chairman and chief executive of SOAR Technology Acquisition Corp., a so-called blank-check company trying to raise about $250 million through an initial public offering targeting a technology or tech-enabled business valued at $1 billion to $5 billion.
Blank-check companies, also known as special-purpose acquisition companies, or SPACs, are publicly traded companies that raise money for potential acquisitions and have become a popular tool among well-known executives.
In addition to Mr. Poulin, who would retain a nearly 20% stake in the company after the offering, investors include venture firm Inovia Capital and Peter Kern, the CEO of Expedia Group Inc., according to documents filed with the Securities and Exchange Commission.
Board members include Mr. Kern and Patrick Pichette, former chief financial officer of Google and now with Inovia Capital.
SOAR Technology, which intends to complete its first deal in about 24 months, is seeking to sell about 25 million units at $10 apiece, with each unit consisting of a Class A share and a third of a warrant.
The sponsor, an affiliate of JPK Seed Capital LLC, agreed to buy about 5.3 million warrants at $1.50 apiece in a private placement that is to close at the same time as the offering, according to the documents.
New investors, however, would have limited say and won't have a right to vote on the appointment of directors until the first deal is completed--and that initial deal may not be presented to new investors for approval, according to the documents.
Auditors have raised "substantial doubt" about the company's ability to meet anticipated obligations over the next year, a so-called going-concern warning. As of Feb. 5, the company had no cash and a working capital deficit of $55,000.
SOAR Technology seeks to trade on the New York Stock Exchange, with units trading under the symbol FLYA.U, shares under FLYA and warrants under FLYA.WT.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 18, 2021 18:59 ET (23:59 GMT)
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