(Reuters) -Ammunition technology company TV Ammo Inc will merge with blank-check firm Breeze Holdings Acquisition Corp in a deal that values the combined entity at $1.21 billion, the companies said on Tuesday.
The transaction is expected to generate cash proceeds of about $76.8 million, assuming there are no redemptions from the trust account of the blank-check or special-purpose acquisition company (SPAC).
TV Ammo, a technology and composite manufacturing company focused on the ammunition industry, will be listed in New York at a time SPAC deals have seen a downtrend amid increased regulatory scrutiny and poor stock performance of firms that did such deals.
The De-SPAC Index that tracks a basket of companies that have listed through SPAC mergers is down roughly 65% so far this year.
A SPAC is a listed shell company that merges with a private company, taking it public in the process.
TV Ammo said it has about 300 issued and pending patents around its technology-based manufacturing process and its products can be used by the military and law enforcement, among others.
After the deal closes, expected towards the first quarter of 2023, Breeze Holdings will be renamed "True Velocity Inc".
(Reporting by Manya Saini in Bengaluru;Editing by Vinay Dwivedi)