Jam City Inc. won’t be going public via a reverse merger after all — at least not with DPCM Capital Inc. as planned.
The two companies announced Friday afternoon that they have canceled their previously announced business combination, effective immediately.
“In light of current market conditions, DPCM Capital and Jam City believe that terminating the business combination agreement is the best path forward for the parties and their respective stockholders,” the companies said in a statement.
Jam City announced plans to merge with the special purpose acquisition company (SPAC) in May. Upon closing, the combined company was going to be called Jam City Holdings Inc. and was expected to trade on the New York Stock Exchange under the ticker symbol “JAM.”
The transaction would have valued the combined company at $1.2 billion, and Jam City was going to use cash proceeds from the merger to buy Montreal-based Ludia Inc. for $175 million. The company did not say on Friday what will happen with the Ludia deal.
DPCM said that it intends to continue to pursue a reverse merger with another company and is evaluating alternative opportunities.
Faraday’s future
Faraday Future, however, did proceed with plans to go public by completing its previously announced merger with the SPAC Property Solutions Acquisition Corp. this week.
The combined company has been renamed Faraday Future Intelligent Electric Inc. and debuted on the NASDAQ Stock Market on July 22, trading under the ticker symbols “FFIE” and “FFIEW.”
Shares opened at $16.84 on Thursday and closed at $13.98.
The business combination will raise about $1 billion, which Faraday will use to launch its flagship vehicle, the FF 91, within 12 months.
Here’s what else L.A. tech companies got up to this week:
Funding
- FloQast Inc. in Sherman Oaks has raised a $110 million Series D led by Meritech Capital for its accounting workflow automation software created by accountants for accountants.
- Santa Monica-based LiveControl Inc. has raised a $30 million Series A led by Coatue to automate video production for live events.
- Los Angeles-based RentSpree Inc. has raised $8 million in Series A funding led by 645 Ventures for its rental transaction software.
Acquisitions and expansions
- Culver City mobile game company Scopely Inc. has invested more than $50 million across three European game studios: Omnidrone, Pixel Toys and Tag Games — based in Spain, England and Scotland, respectively.
- Santa Monica-based Verishop Inc., an online department store co-founded by former Snap Inc. Chief Strategy Officer Imran Khan, is partnering with the CEO’s former employer, launching Verishop Mini, a curated shopping experience exclusively on Snapchat.
- Jukin Media Inc., the Los Angeles purveyor of user-generated content, has pushed into original programming with the launch of the new 12-episode series “Show Us Your Pets” for the company’s “Pet Collective” brand featuring such celebrity guests as Gabriel Iglesias, Tori Kelly, Loren Gray and Nicole Travolta.
