Singaporean film and television content rights marketplace Allrites Holdings has agreed to go public in the US through a merger with blank cheque company Aura FAT Projects Acquisitions Corp.
In a statement, Allrites said the transaction will give it an enterprise value of $92 million, with another potential $18 million in earnout over two years, subject to certain conditions.
The agreement also allows Aura FAT Projects to seek a private investment in public equity, or PIPE, before closing the transaction, which was approved unanimously by the boards of both companies.
The merger will see Allrites becoming a wholly-owned subsidiary of Aura FAT Projects and listed on the Nasdaq Global Market under the ticker symbol “ART”.
Aura FAT Projects, the special purpose acquisition company (SPAC) co-sponsored by Singapore-headquartered fund managers Aura Group and Fat Projects, announced in April last year that it has raised $115 million in its initial public offering (IPO) in the US.
Allrites, on the other hand, runs a content-as-a-service business for buyers of film and television licenses. Founded by Australian former television producer Riaz Mehta, the company generates more than half of its revenue in the US.
“This announcement of Allrites’ business combination with AFAR represents the next major milestone in our journey to have the needed resources and talent to build and expand our footprint and next-generation technology,” Mehta said.
Mehta will continue to lead Allrites after the business combination, according to the statement.
SPACs, also known as blank cheque companies, raise capital via traditional initial public offerings (IPO) for the purpose of acquiring a privately held company. A merger with the publicly traded SPAC provides a private company with a cheap and fast listing route.
Last month, Indonesian B2B fintech startup DigiAsia Bios announced plans to complete its business combination with StoneBridge Acquisition Corporation, a publicly traded SPAC.
AEI CapForce II Investment, a Malaysian SPAC that targets the “new economy” in Asia, also filed to raise up to $100 million in an IPO in the US last February. Beijing-based AI Transportation Acquisition also filed to raise up to $50 million.