Surf Air drops SPAC, plans direct listing

By Doug Gollan, November 20, 2022

It’s another change for Surf Air Mobility, as multiple media report it canceled plans for a SPAC merger with Tuscan Holdings Corp. II

Surf Air Mobility has called off its SPAC merger with Tuscan Holdings Corp. II, announced in May, according to reports in Reuters and Aviation International News.

The SPAC merger would have provided $467 million in cash.

Last month, Surf Air announced an agreement of principal terms with Jetstream Aviation Capital to finance up to $450 million through a customized lease and sale structure to fund planned fleet growth.

If consummated, the deal would give the Los Angeles-based platform access to the financing over a six-year period.

It is not clear how the latest news impacts its plans to merge with Southern Airways, which were also announced back in May.

While the Southern Airways merger was announced as a definitive agreement, there have been no updates.

According to Reuters, Surf Air still plans to go public with a direct listing.

“As opposed to a traditional initial public offering, no new shares are created in a direct listing. The process allows insiders to sell their shares instantly and without the support of traditional underwriters,” Reuters reports.

Surf Air continues to offer scheduled-by-the-seat flights in California and fixed-rate route pricing in the west, along with its plans to create a digital marketplace.

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