Stellar Acquisition III Inc. will combine with Phunware Inc. in a transaction that values Phunware at an enterprise value of $301 million, on a cash-free and debt-free basis.
The transaction will be paid in newly issued equity securities of Stellar. The transaction will allow Stellar to enter the mobile cloud software and blockchain sectors and is expected to close in the second quarter.
Phunware plans to initiate a token generation event based on its "PhunCoin" cryptonetworking ecosystem in the first half of 2018.
The common shares and warrants of the combined entity are expected to trade on the NASDAQ Stock Market under the name Phunware Inc. and trading symbols PHUN and PHUNW, respectively. The combined company will be led by Alan Knitowski, who will continue as Phunware's CEO, and Matthew Aune, who will remain as Phunware's CFO.
Phunware runs a service customer engagement platform that enables brands to engage, manage and monetize their users worldwide. Stellar is a blank check company, also commonly referred to as a special purpose acquisition company, formed for the purpose of merging with companies and often bringing them to the public market.
Maxim Group LLC and Graceworth Ltd. are acting as financial advisers to Stellar on the proposed transaction. Ellenoff Grossman & Schole LLP is acting as counsel to Stellar. BTIG LLC is acting as financial adviser to Phunware, and Wilson Sonsini Goodrich & Rosati PC is acting as Phunware's counsel.
