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AIRO Group Agrees on SPAC Merger to Attain Nasdaq Listing

by Ben Mirwani
AIRO Group Agrees on SPAC Merger to Attain Nasdaq Listing

AIRO Group has confirmed plans to merge with special purpose acquisition company (SPAC) Kernel Group Holdings in order to become a publicly listed company on the Nasdaq stock exchange in Q3 2023.

The merger, announced on Monday, marks a strategic shift for AIRO as it had sought a direct initial public offering without having to resort to a SPAC since October 2021. It led to speculation that the group would be listed on the New York stock exchange in 2022, but it never came to fruition.

AIRO is the parent company of Jaunt Air Mobility, an eVTOL manufacturer, Aspen Avionics, and numerous drone-specific businesses.

Upon signing the merger, AIRO and Kernal will become wholly-owned subsidiaries of PubCo, with the new board consisting of AIRO co-founder and executive chairman Dr. Chirinjeev Kathuria, co-founder and CEO Joe Burns, president and COO John Uczekaj, who also established Aspen Avionics, Kernel chairman and CEO Suren Ajjarapu and director Michael Peterson.

“AIRO leverages decades of industry expertise across the drone services, aviation, and avionics markets to offer a sector-leading enterprise providing innovative aerospace, urban air mobility, and UAS products and services,” Ajjarapu said. “We think that the combination will result in positive valuations and long-term growth, as we build the leading mid-market publicly traded aerospace and defense company.”

The combined company will be known as AIRO and is expected to be valued at $847 million, as per the share offering. This assumption is made on the basis that no current Kernel shareholders redeem their stock once the merger is complete.

The two entities projected group revenues to be $43 million in 2023 and forecast it to rise in the region of $2.9 billion by 2030. The significant increase in earnings is based on the expected delivery of Jaunt’s Journey vehicle, which can hold up to four passengers, fly at a maximum speed of 175 mph and cover a distance of 80 to 120 miles (128 to 193 km).

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