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11/23/2022
HyperloopTT, a Los Angeles-based company that operates a licensing platform for hyperloop technology, yesterday announced plans to merge with Forest Road Acquisition Corp.
Following the merger's closing, the new company will go public as Hyperloop Transportation Technologies, HyperloopTT officials said in a press release. Current HyperloopTT CEO Andres de Leon will stay in his executive role, along with other management employees.
HyperloopTT recorded a pre-money equity value of about $600 million, including outstanding options and warrants. Existing HyperloopTT shareholders will roll over all interests to the new company, with about $289 million of common stock to be issued at closing.
The merged company will work toward realizing the hyperloop, a vacuum tube-based system that moves both passengers and freight in levitating capsules at high speeds on the ground. The speed is achieved using passive magnetic levitation technology and a linear electric motor in a low-pressure tube that reduces resistance.
A hyperloop system could be cleaner, safer, healthier and more efficient than current modes of transportation, company officials said.
HyperloopTT has already developed a full-scale test track in France, an insurance framework model and safety and certification guidelines. It also holds 40 global patents — with 26 more pending — related to levitation, propulsion and low-pressure tube transportation.
The company is pursuing multiple projects, including the development of a commercial prototype in Italy.
Forest Road Acquisition is based in New York City.