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Mobiv Acquisition Corp (NASDAQ:MOBVU, MOBV, MOBVW))))) ("Mobiv"), a special purpose acquisition company with a focus on electric vehicles, today announced it has entered into a definitive merger agreement whereby Mobiv will combine with SRIVARU Holding Ltd. ("SRIVARU"), a commercial-stage provider of premium electric motorcycles, to create a new publicly traded company. The transaction is expected to provide SRIVARU with access to additional capital and position the company to accelerate the commercial rollout-out of its electric two-wheeled ("E2W") vehicles in the Indian market.
Key transaction highlights:
SRIVARU is one of the leading providers of premium electric motorcycles in India, the world's largest and fastest-growing market for two-wheeled vehicles. As an industry-leading, all-electric motorcycle and micro-mobility company, SRIVARU is redefining the E2W segment, which is a large and significant segment within the overall mobility industry. Building on its years of research and established market presence, SRIVARU plans to expand across India and into other markets with a goal of advancing a carbon-free future.
Prana Grand: India's premium electric motorcycle
Peter Bilitsch, CEO of Mobiv, stated, "We are excited to announce this transformative transaction, which we believe will not only drive significant value for stockholders, but has the potential to transform the Indian and global electric vehicle markets. We believe SRIVARU's state-of-the-art technologies, low-cost manufacturing, expanding distribution channels and attractive price points for consumers are poised to disrupt the motorcycle market in both India and around the world. India alone is one of the world's largest and fastest-growing markets for two-wheeled vehicles, with estimated revenues of US$25.6 billion and expected to grow to US$36.1 billion by 2027. India has a large, young and growing urban customer base experiencing rising standards of living. As a result, we believe SRIVARU is positioned to capture a significant share of the market given its technological leadership and first-mover advantage and, most importantly, the resounding favorable public reviews to date. We are honored to support SRIVARU on this exciting journey."
Mohanraj Ramasamy, CEO of SRIVARU, stated, "We appreciate the support of Mobiv's board of directors and stockholders as we embark on the next phase of our evolution as a public company. The platform provided through this combination is expected to significantly accelerate our growth. With over five years of research and development, our goal is to revolutionize the e-mobility industry. The Prana Grand is already one of India's leading premium electric motorcycles, featuring state-of-the-art technology and patented innovations. Our proprietary integrated charging solution allows home charging, which we intend to expand by collaborating with local utilities. With the expected upcoming launch of our next-generation Prana Elite, we plan to expand the Prana's range from 126 kilometers (78 miles) to 225 kilometers (140 miles), along with other significant enhancements. We also offer a favorable total cost of ownership value proposition relative to internal combustion motorcycles and other E2W manufacturers. We also offer our customers attractive financing programs through banks and Non-Banking Financial Companies (NBFC). As a result, feedback from the market has been overwhelmingly positive, as illustrated by the fact we have received many inquiries from potential customers and have received over 700 dealership applications to date. Overall, we believe we have built a lean, high margin and highly scalable business model that has the potential to drive significant value for shareholders for years to come, while contributing to reduced carbon emissions worldwide."
The combined company will be known as SRIVARU Holding Ltd. and will be led by SRIVARU's current management team. The transaction is anticipated to generate gross proceeds of up to approximately US$104 million of cash, assuming no redemptions by Mobiv's public stockholders, which will be used to fund operations and growth. The pro forma implied enterprise value of the combined company is approximately US$195 million. Including the vehicle sales revenue-based earn-out for SRIVARU shareholders of 25 million shares, the implied total consideration to SRIVARU shareholders will be approximately US$409 million, assuming US$10 per share. The earnout for vehicle sales is based on SRIVARU achieving sales revenue for vehicles and such other products as approved by the board of SRIVARU of US$39 million for the fiscal year ending March 31, 2024, US$117 million for the fiscal year ending March 31, 2025, and US$553 million for the fiscal year ending March 31, 2026. Mobiv's net cash proceeds, which exclude any potential common stock redemptions, will be used to fund SRIVARU's strategic plan to accelerate its go-to-market strategy, invest in new product development, and enhance its global manufacturing and distribution capabilities. The transaction has been approved by the boards of directors of both SRIVARU and Mobiv, and is expected to close in the first half of 2023, subject to the approval of Mobiv stockholders, regulatory approvals, and other customary closing conditions.
Following the transaction, SRIVARU's Board of Directors will include a majority of independent directors in addition to representation from SRIVARU and Mobiv. Additional information about the proposed transaction, including a copy of the Business Combination Agreement and the investor presentation, will be provided in a Current Report on Form 8-K to be filed by Mobiv with the SEC and available at www.sec.gov.
+Not including employee stock options, if any.
