Israel Acquisitions Corp (NASDAQ: ISRL) and Pomvom (TASE: PMVM) have mutually agreed to terminate their Business Combination Agreement, citing unfavorable global market conditions.
Both parties signed a Termination Agreement, waiving any claims against each other, except for violations related to confidentiality or the termination itself. The decision to call off the merger was made to avoid additional expenses and in light of the challenging capital market environment.
"We jointly decided to terminate the merger, recognizing that current market conditions do not support the original financial terms," commented Shira Fayans Birenbaum, Chairman of Pomvom, and Izhar Shay, Chairman of Israel Acquisitions Corp., in a press release. "This decision was made to prevent further costs and in good faith."
The two entities had reached a definitive business combination agreement back in January of this year. The combined entity, expected to be valued at an equity total of $125 million, was set to transition Pomvom from the Tel Aviv Stock Exchange (TASE) to a Nasdaq listing.
Pomvom, known for its partnerships with major operators like Six Flags, Warner Bros., and Merlin Entertainment, had been rapidly expanding its footprint. Notable agreements inked in 2023 with Warner Bros. and Six Flags are expected to increase Pomvom's partner sites to 47 by the end of 2024—a 23% jump from the current 38 sites.
In 2022, Pomvom reported revenues of $57.4 million, and the first nine months of 2023 saw revenues reach $45.3 million. For the 2023 year, the company record revenues of $58.7 million, 2% growth year over year.
Pomvom currently trades as a market capitalization of $17.3 million.
