Innovative International (IOAC) Adds $5M to Zoomcar Deal

Innovative International Acquisition Corp. (NASDAQ:IOAC) announced in an 8-K this morning that it has entered into a subscription agreement with Ananda Trust, an affiliate of the sponsor, ahead of its completion vote for its merger with car-sharing program Zoomcar.

Under the agreement, Ananda Trust agreed to purchase 1,666,666 IOAC Class A ordinary shares for $3.00 per share, totaling roughly $5 million, which is contingent upon the consummation of the proposed combination.

This will mirror the previously disclosed agreement in which Innovative International secured a $10 million convertible promissory note with Ananda Trust last October, with terms almost identical. The only difference is the reduced per-share purchase price of $3.00, compared to the earlier per-share purchase price of $10.00.

At the same time as finalizing the closing subscription agreement, IOAC and Ananda Trust entered into a revised lock-up agreement. This agreement imposes trading restrictions on all securities held by Ananda Trust and any securities that might be issued to Ananda Trust related to the combination. These restrictions apply until either twelve months following the closing of the combination or after the merger.

The SPAC’s shareholders are set to vote on its combination with Zoomcar during a special meeting today at 11:00 a.m. ET. The meeting was originally scheduled for October 25, but was later adjourned to allow for more time for the parties to consider and finalize financing transaction terms.

Innovative International announced its $456 million deal with Zoomcar in October 2022. Bangalore, India-based Zoomcar operates a car sharing service that empowers host entrepreneurs to safely and easily share their cars to earn additional passive income.