NEW YORK and BREA, Calif., Aug. 21, 2024 (GLOBE NEWSWIRE) — Yotta Acquisition Corporation (NASDAQ: YOTA), a publicly traded special purpose acquisition company, and DRIVEiT Financial Auto Group, Inc., an operator of electric vehicle superstores that supports customers’ entire electric vehicle experience, today announced that they have entered into a definitive merger agreement, dated August 20, 2024. Upon the closing of the transaction, the combined company is expected to change its name to DriveiT Financial Auto Group, Inc. and its securities are expected to be traded on the Nasdaq Stock Exchange. DRIVEiT’s executive management team will continue to lead the combined company.
Company Overview
DRIVEiT is a pioneering company dedicated to transforming the customer EV experience. DRIVEiT offers a comprehensive ecosystem encompassing EV sales, financing, and post-purchase services such as warranty, service, and parts. DRIVEiT’s vision is to become the ultimate EV superstore, providing unparalleled support throughout the entire customer journey.
Management Comments
“We are very excited about this opportunity and the future for all Yotta and DRIVEiT stockholders. DRIVEiT is an industry first innovator building an EV superstore, encompassing everything from sales, service, parts and collision repair with laser focus on a unique customer experience,” said Shawn Hughes, chief executive officer of DRIVEiT. “In our partnership with Yotta, the future is now as we set the bar for retail EV car buying and ownership experience.”
“We are very pleased to announce the proposed merger with DRIVEiT,” said Mr. Hui Chen, the Chief Executive Officer of Yotta. “After undertaking a comprehensive process with external advisors to explore and evaluate numerous potential business combination targets, our board and management team believe that this transaction with DRIVEiT represents the best opportunity to create substantial value for our stockholders. This business combination, if consummated, will result in Yotta investors owning an equity stake in a company that is environmentally conscience and is focused on providing comprehensive solutions for customers. We are thrilled to support DRIVEiT at an inflection point in its development and to provide an avenue for DRIVEiT to expeditiously meet its development milestones.”
Transaction Overview
Pursuant to the Merger Agreement, DRIVEiT will merge with Yotta Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Yotta (the “Merger”), with DRIVEiT surviving and Yotta acquiring 100% of the equity securities of DRIVEiT. In exchange for their equity securities, the stockholders of DRIVEiT will receive an aggregate of 10,000,000 shares of common stock of the combined company, which, at an implied value of $10.00 per share, would represent $100 million in equity.
All cash remaining on the combined company’s balance sheet at the closing of the transaction, after the settlement of transaction-related expenses, is expected to be utilized by the combined company for working capital, growth, and other general corporate purposes.
The transaction, which has been approved by the boards of directors of Yotta and DRIVEiT, is subject to approval by Yotta’s stockholders, DRIVEiT’s stockholders and other customary closing conditions, including a registration statement on Form S-4 being declared effective by the U.S. Securities and Exchange Commission. The proposed business combination is expected to be completed in the first half of 2025.
Additional information about the proposed transaction, including a copy of the Merger Agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Yotta with the U.S. Securities and Exchange Commission (the “SEC”) and will be available at www.sec.gov.
Advisors
Celine & Partners PLLC is acting as legal counsel to Yotta.
Loeb and Loeb LLP is acting as legal counsel to DRIVEiT.
EarlyBirdCapital Inc. is acting as capital market advisor in connection with the transaction.
About DRIVEiT Financial Auto Group, Inc.
DRIVEiT is a pioneering company dedicated to transforming the customer EV experience. DRIVEiT offers a comprehensive ecosystem encompassing EV sales, financing, and post-purchase services such as warranty, service, and parts. DRIVEiT’s vision is to become the ultimate EV superstore, providing unparalleled support throughout the entire customer journey.
About Yotta Acquisition Corporation
Yotta Acquisition Corporation is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Yotta is led by Hui Chen, Chief Executive Officer, and Robert Labbe, Chief Financial Officer, who are growth-oriented executives with a long track record of value creation across industries.
