Mobix Labs to join fellow chipmaker Indie Semiconductor with reverse merger plans

SPACs, the method being used by Mobix Labs Inc. to go public, are blank check companies that raise money from public market investors and then merge with a private operating company, to provide the private business with a cash infusion and a track to becoming a public company.

The popularity of SPACs has waxed and waned in recent years. Several OC firms have used the SPAC vehicle to go public in the past few years, and nearly all are trading below their initial $10 offering price. Many are well off the $10 per share benchmark.

Automobile tech company Indie Semiconductor Inc. (Nasdaq: INDI) went public via a SPAC in June 2021, and raised nearly $400 million in proceeds from the reverse merger and a concurrent $150 million financing deal.

Indie’s shares were trading around $8 last week. Despite the stock decline it’s still one of the better-performing SPAC deals seen in OC, based on share price. The firm, which aims to reach profitability next year, has a market cap of about $1.2 billion.