Acri Capital, Foxx Development Announce Merger Deal

(RTTNews) - Acri Capital Acquisition Corporation (ACAC), a special purpose acquisition company, and Foxx Development Inc., a consumer electronics and IoT solutions firm, announced on Tuesday that they have inked a merger deal through which newly formed subsidiary of Acri will become a listed company combining Acri and Foxx.

The transaction is expected to be closed in the second-quarter of 2024.

Joy Yi Hua, CEO of Acri, said: "Acri's inception revolved around the goal of identifying and partnering with companies led by visionary, mission-oriented leadership teams who harness the technology and innovation to disrupt thriving and expanding markets. In this context, Foxx is an ideal fit, aligning with our criteria."

The merger consideration of $50 million will be paid by newly-issued shares of the combined company valued at $10 per share, among which 500,000 shares will be deposited into an escrow account.

Further, an additional up to 4,200,000 shares may be issued to Foxx shareholders upon achievement of certain financial performance milestones of the combined company for the years ending June 30, 2024 and June 30, 2025.

Upon the closing, Acri stockholders will have around 51.98 percent of the combined company, whereas the Foxx stockholders will own approximately 48.02 percent.

Post transaction, the combined company is expected to be listed on the Nasdaq.

EF Hutton LLC is serving as capital markets advisor, and Robinson & Cole LLP is working as legal counsel to Acri. VCL Law LLP is serving as legal counsel to Foxx.