Inpixon announced today a landmark definitive agreement wherein its wholly owned subsidiary, Inpixon Ltd, a division of Inpixon’s statistical analytics and visualization for engineering and sciences (SAVES) business based in the United Kingdom, is slated to be acquired by private Canadian firm, Damon Motors Inc. Damon, a British Columbia-based company renowned for its acclaimed HyperSport electric motorcycle, is set to fortify its position in the market with this strategic move. Following the announcement of the merger with Damon Motors, stock value of Inpixon witnessed a substantial surge.
At the time of this publication, Inpixon stock (INPX) has witnessed a surge.
Inpixon
Current Price: $0.11
Change : +0.01
Change (%): (11.89%)
Volume: 39.9M
Source: Tomorrow Events Market Data
The Damon HyperSport is anticipated to redefine safety, intelligence, and power benchmarks within the motorcycle industry. Simultaneously, Damon unveiled a staggering $85 million in pre-production consumer reservations for its motorcycles, underlining strong market demand for their innovative offerings.
In a valuation conducted by Inpixon’s independent financial advisory firm, Damon’s enterprise worth was determined to range between $224 million and $284 million.
This transaction stands independent of the pending merger between Inpixon and XTI Aircraft, Inc. (the “XTI Transaction”), which remains on course for an anticipated closure later this quarter. Inpixon has stipulated October 24, 2023, as the record date for stockholders eligible to vote for the XTI Transaction at the special meeting, replacing the 2023 annual meeting of shareholders of Inpixon.
Inpixon’s strategy involves contributing all the outstanding capital stock of Inpixon UK to the recently established British Columbia subsidiary, Grafiti Holding Inc. (“Grafiti”). Subsequently, there will be a spinoff (“Spin-off”) of all the outstanding capital stock of Grafiti (“Grafiti Shares”) owned by Inpixon to the holders of Inpixon’s outstanding capital stock, along with certain other securities, the record date for which will be determined later (“Inpixon Securityholders”).
Following the merger of Grafiti and Damon, holders of Grafiti Shares, including Inpixon Securityholders and management holding Grafiti Shares immediately prior to the Business Combination, are projected to retain roughly 18.75% of the outstanding capital stock of the combined entity, based on a fully diluted assessment. This also encompasses up to 5% in equity incentives that may be extended to Inpixon’s management.
Additionally, Inpixon will make a strategic move by purchasing a convertible promissory note from Damon worth $3 million, alongside warrants to purchase common shares of Damon (“Damon Note and Warrants”) for a total sum of $3 million.
Upon the completion of the Business Combination, the Damon Note and Warrants will be exchanged for common shares of the combined entity, and warrants to purchase common shares of the same, in line with the stipulations of the definitive agreements. Notably, no securities of Inpixon will be issued in conjunction with the Business Combination.
Following the integration, Inpixon UK and Damon will stand as wholly owned subsidiaries of Grafiti. The latter will assume a new identity, to be determined by Damon. The combined entity is slated for listing on the Nasdaq Stock Market, pending Nasdaq’s approval of the initial listing application. The merger has received unanimous approval from the Boards of Directors of both Inpixon and Damon, subject to requisite clearances and the satisfaction of customary closing conditions.
The merger between Inpixon and Damon Motors promises to reshape the landscape of both companies, as reflected in the surging stock value, signaling a new era of growth and innovation in the industry.
