Zanite Acquisition Corp. (ZNTE) Adds $10M PIPE to Eve Deal

Zanite Acquisition Corp. (ZNTE) Adds $10M PIPE to Eve Deal

Zanite (NASDAQ:ZNTE) announced this afternoon that it has added $10 million to its PIPE for its combination with electric vertical take-off and landing vehicle (eVTOL) manufacturer, Eve.

Zanite amended the subscription agreement yesterday with a direct wholly-owned subsidiary of Embraer (EAH) pursuant to which EAH purchased an additional 1,000,000 shares for $10 million.  This amount brings the total PIPE proceeds to $357.3 million, which will be enough to fulfill the deal’s $350 million minimum cash closing condition.

The SPAC has been consistently securing financial commitments for the deal’s original $305 million PIPE since the end of December when it added $10 million through a strategic investor. Zanite then added $2.3 million to the PIPE with an additional strategic investor in mid-March, and $30 million just a week later.

The original PIPE is made up of a $175 million investment by Embraer as well as $25 million from Zanite’s sponsor and a further $105 million from strategic investors Azorra Aviation, BAE Systems (LON:BAES), Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce (LON:RR), and SkyWest (NASDAQ:SKYW).

The parties announced their $2.4 billion deal a few months ago on December 21. Florida-based Eve is working to commercialize its eVTOL designs as air taxis and other mobility solutions as Embraer’s internally incubated play on that new market.