IXAQU - AERKOMM and Nasdaq-Listed IX Acquisition Corp. Announce Merger Agreement and US $35 Million Private Placement | Benzinga
SILICON VALLEY, Calif., March 29, 2024 (GLOBE NEWSWIRE) -- AERKOMM Inc. ((Euronext: AKOM, OTCQX:AKOM, "AERKOMM")), an innovative satellite technology company providing multi-orbit broadband connectivity solutions, and IX Acquisition Corp (NASDAQ:IXAQU, "IXAQ")), a SPAC focused on the technology, media and telecommunications industries, have entered into a definitive Business Combination Agreement ("BCA") and raised US $35 million in a private placement.
The combined business will be called AKOM Inc. ("AKOM") and its ordinary shares are expected to result in AERKOMM transferring its listing from Euronext/OTCQX to Nasdaq under the ticker "AKOM", following the closing of the business combination. It is the intention of the combined business to also maintain a secondary listing on Euronext.
Transaction highlights
- Adjusted enterprise value of AERKOMM is US $200 million, as well as up to US $200 million of earnout shares for the AERKOMM shareholders, if certain milestones are achieved.
- Transaction supported by a fund-raise of US $35 million common equity PIPE (Private Investment in Public Equity) subscribed concurrently with the signing of the BCA. The PIPE investors consist of new and current shareholders in AERKOMM. There may be more capital raised prior to the business combination, but there is no minimum cash condition for the transaction.
- Existing AERKOMM shareholders are anticipated to roll 100% of their equity and may own approximately two-thirds of the new combined pro forma AKOM, subject to final amounts of PIPE capital raised and of cash retained in IXAQ trust.
- The Nasdaq-listing is intended to enable AKOM to execute its strategy to provide carrier-neutral and software-defined infrastructure to deliver mission-critical, multi-orbit satellite broadband connectivity.
- Completion of the transaction is expected in Q3 2024, which is subject to SEC review, to approval by IXAQ and AERKOMM shareholders and to the satisfaction of certain other customary closing conditions.
AERKOMM is an innovative satellite technology company, providing carrier-neutral and software-defined infrastructure for multi-orbit, end-to-end satellite broadband connectivity, serving both public and private sectors, including Aerospace & Defense and Civilian Telecommunications. AERKOMM has a range of next-generation satellite technologies that offer broadband connectivity by collaborating with satellite partners and mobile network operators to link users and platforms on the edge to core infrastructure hubs.
AERKOMM has established a strong engagement with leading satellite constellation operators spanning multiple orbits, including low-earth orbit (LEO), medium-earth orbit (MEO), geostationary earth orbit (GEO) and highly elliptical orbit (HEO). Additionally, AERKOMM's technology is currently being implemented in the Aerospace & Defense market, having been tested live in selected defense assets.
AERKOMM is developing partnerships with both public and private sector clients that have increasing demands for multi-beam and multi-orbit satellite communications solutions.
AERKOMM holds a strong market position. Its target markets, Aerospace & Defense and Civilian Telecommunications, are expected to grow from c. $20bn to c. $60bn by 2030 (Sources: Fortune Business Insights, Boeing 2023 Annual Report, NSR Report, Teal Group).
AERKOMM has considerable technical expertise with executives and innovators drawn from semi-conductors, aerospace, defense, telecoms dual-use and satellite communications sectors.
AERKOMM's strong capabilities deliver differentiated solutions:
- High throughput. AERKOMM's semiconductor glass antenna transmits and receives 50% Mbps more throughput per square-inch compared to previous state-of-the-art satellite broadband terminals.
- Interoperability. AERKOMM's universal terminals, including multi-orbit glass semiconductor antennas and software-defined radio modems, provide carrier-neutral broadband connectivity. These terminals are designed to meet the diverse needs of users across various sectors, delivering high-quality connectivity and performance.
- Virtualization. AERKOMM's software-defined core network waveforms integrate satellites and ...