Direct Selling Acquisition Combining with Hunch Technologies in $223M Deal

Direct Selling Acquisition in an 8-K announced a merger agreement with Aeroflow Urban Air Mobility Private Limited, which is a company incorporated in India, and Hunch Technologies, a private limited company incorporated in Ireland. 

The transaction implies a pro forma enterprise value of $223 million, with an implied pre-money market capitalization of $150 million.

If approved, Hunch Technologies is expected to list on the New York Stock Exchange under the symbol HNCH.

An investor with majority economic, non-voting interest in the SPAC's sponsor has committed to investing up to $20 million in the form of equity purchases in DSAQ subject to non-redemption, convertible notes and convertible preferred shares.

Concurrently with the execution of the business combination agreement, the SPAC entered into a subscription agreement in which the investor agreed to purchase 700,000 preferred shares for gross proceeds of $7 million.

Additionally, Hunch Technologies entered into a subscription agreement with Quick Response Services Provider, which prior to the merger closing will purchase 300,000 shares for gross proceeds of $3 million.

Hunch Mobility is an urban air mobility platform dedicated to providing “by-the-seat” short distance air mobility services in India. The company has operated more than 1,626 flights with an approximately 43% repeat flying rate and has launched its services in two states in India: Maharashtra and Karnataka.

The company aspires to lead the transition to electric vertical take-off and landing vehicles in the Indian subcontinent in the near future.

The SPAC raised $200 million in a September 2021 IPO with plans to focus on domestically based businesses within the direct selling industry. Redemptions removed about $182.5 million from the trust ahead of a successful extension vote in March 2023. Read more.

Source: Direct Selling Acquisition Combining with Hunch Technologies in 3M Deal