Boxabl To Use SPAC To Go Public At $3.5B Valuation
Boxabl is planning to go public at a roughly $3.5B valuation.
The modular homebuilding company is merging with a publicly traded holding company to list on the Nasdaq Stock Market, a method of going public that was popular during the height of the pandemic but has become less common.
Boxabl announced it will merge with FG Merger II Corp., a special purpose acquisition company that trades under the ticker FGMC. Once the deal is completed, the ticker will switch to BXBL, which the firm reserved in March ahead of a planned public listing.
SPAC mergers allow firms to go public quickly and without the scrutiny from the Securities and Exchange Commission that typically comes with an initial public offering. SPACs are also known as blank check firms, with their sole purpose being to find a company to merge with and bring public.
Boxabl’s private shareholders are expected to have all of their equity rolled into public stock, with the firm issuing 350 million public shares at $10 apiece, according to a public filing outlining the deal. Boxabl co-CEOs Paolo and Galiano Tiramani will continue to lead the company.
An expected closing date for the deal isn’t listed in filings with the SEC, but the publicly listed merger firm has the right to terminate the deal if it isn't done by the end of the year.
Boxabl offers prefabricated modular homes that are built off-site and marketed as accessory dwelling units. The Las Vegas-based company was founded in 2017 and says it has since raised more than $230M from more than 50,000 investors.
The company got a huge marketing boost last November when Elon Musk, the world’s richest person, said in an interview that he lived in a Boxabl home.
The merger will help fund expansion plans, Galiano Tiramani said in a statement.
“This potential public listing could provide Boxabl with access to greater capital and broaden our platform to deliver affordable, sustainable housing at scale,” he said.
Boxabl was the subject of a 2023 SEC investigation that wrapped up in July 2024 with no enforcement actions taken. Details of the investigation were never released, but Boxabl suggested in a 2023 SEC filing that it was related to pending lawsuits and “unconventional marketing of securities offerings,” The Real Deal reported at the time.
A former Boxabl employee, Yanni Tassev, was also charged last June by the SEC for allegedly collecting $1.6M from seven investors in 2022 for Boxabl securities that he didn't own and couldn't hand over. The case is pending in federal court in Las Vegas.
