- Arrow Aviation provides private flights to the public sector, with specialized operations such as air ambulances.
- The deal includes transferring a Hawker 800 aircraft valued at $3.5 million to Arrow Aviation.
- The MoU also grants options to acquire the remaining 49% after two years, Polyrizon said.
Shares of Polyrizon (PLRZ) gained 6% in premarket trading on Tuesday after the company announced that it recently signed a memorandum of understanding to acquire a 51% stake in global private aviation firm Arrow Aviation through a cash investment of NIS 18 million ($5.8 million).
“We believe that this strategic move, upon completion, represents an exciting diversification opportunity for Polyrizon, allowing us to leverage our strong financial position to enter the dynamic private aviation market, a market set to grow to $41.38 billion by 2030, through a potential acquisition of a high-growth, high-potential company,” said Tomer Izraeli, CEO of Polyrizon.
Deal Rationale
Arrow Aviation provides private flights to the public sector, with specialized operations including air ambulances, medical evacuations, rescue missions, special-needs transport, medical tourism, and cargo services, including the transport of sensitive and hazardous materials under special licenses.
The company last reported annual unaudited revenues of around $19 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of around $3 million.
The deal includes transferring a Hawker 800 aircraft valued at $3.5 million to Arrow Aviation in exchange for a convertible note issued by Polyrizon.
Arrow Aviation shareholders will also forgive outstanding debts for convertible notes, allowing the company to operate debt-free after closing. The MoU grants options to acquire the remaining 49% after two years, with a definitive agreement expected within 30 days, subject to due diligence.
How Did Stocktwits Users React?
Despite the intraday gains, retail sentiment on Stocktwits turned 'neutral' from 'bullish' a day earlier.
One user noted the increasing volumes traded and the company's market cap.
PLRZ shares have gained more than 66% so far this year.
$1 = NIS 3.1
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