Hyperloop Transportation Technologies and Forest Road Acquisition Corp. II announced that they have entered into a definitive merger agreement that is expected to result in HyperloopTT becoming a publicly listed company.
Upon the closing of the transaction, the newly combined company will be named “Hyperloop Transportation Technologies'' and will continue to be led by CEO Andrés de León and the HyperloopTT management team.
The transaction ascribes to HyperloopTT a pre-money equity value of approximately $600 million, including outstanding options and warrants.
Since its inception in 2013, HyperloopTT said it has made progress towards the adoption of hyperloop systems. The company developed a full-scale hyperloop test track in Toulouse, France, a hyperloop insurance framework model, and model safety and certification guidelines.
According to the company's news release, hyperloop is a vacuum tube-based system that moves people and goods in levitating capsules at airplane speeds on the ground. These speeds are achieved by using passive magnetic levitation technology and a linear electric motor in a tube with minimal pressure, reducing resistance.
“This transaction is a major milestone for HyperloopTT and the hyperloop industry as a whole," de Leon said. "The transaction is a moment that could not have been possible without our countless supporters around the world, who have built HyperloopTT into a company that is perfect for this moment. Our innovative business model has allowed HyperloopTT to succeed while facing enormous challenges. The team has worked tirelessly these past nine years to gain the support of the private and public sectors in countries around the world. We thank Forest Road for working with us through this process and embrace this next step with humility, gratitude, and determination.”
HyperloopTT added that it is currently pursuing:
- Commercial prototype in Italy: Hyper Transfer Demonstrator project. A final proposal for tender was submitted in Q4 2022 as part of a Consortium. Expect tender to choose the contract winner by Q1 2023.
- Multi-state commercial line project: Great Lakes Hyperloop Feasibility study complete and HyperloopTT expected to facilitate Environmental Impact Statement in 2023.
- Cargo hyperloop technology: HyperPort Cargo Solution, Germany. Joint venture with Hamburger Hafen und Logistik AG (HHLA).
- Testing & certification MOU with ENSCO: Federal Rail Administration’s Transportation Technology Center, Colorado, United States.
- Commercial prototype site exploration: Three-mile passenger system, R&D, and experience center, Canada.