Majic Wheels to merge with SPAC OceanTech Acquisitions in $200M deal

Majic Wheels ( OTCPK:MJWL ) said Wednesday it will merge with SPAC OceanTech Acquisitions I ( OTEC ) in a deal valued at ~$200M (20M shares). OceanTech ( OTEC ) and Majic Wheels ( OTCPK:MJWL ) also entered into a forward share purchase deal for up to $40M committed backstop by Meteora Capital Partners. The combined company can receive up to $106.1M in cash held in trust by OceanTech ( OTEC ), which will include the guaranteed backstop arrangement for the trust. On closing, OceanTech will be renamed Majic and expects to remain listed on Nasdaq under the ticker "MJWL" with a combined business value of ~$333.4M on signing of the deal. The deal includes up to $500M earn-out consideration (50M shares) on certain triggering events over the next three years based on the combined firm's future revenue. The business combination is expected to be completed in H1 2023.