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MIAMI/NEW YORK - A1R WATER, a producer of atmospheric water generation systems, has entered into a definitive agreement to merge with special purpose acquisition company Inflection Point Acquisition Corp. III (NASDAQ:IPCX), according to a press release statement.
The transaction values A1R WATER at a pro forma enterprise value of $419 million and includes a fully committed PIPE investment of $63.5 million, with $32.5 million already funded at signing. The PIPE investment is led by SPAC sponsor Inflection Point Asset Management and includes strategic investment from Southern Glazer’s Wine & Spirits through its SG Ventures arm.
Upon closing, expected by the end of the first quarter of 2026, the combined company will be named Air Water Ventures Limited and list on the Nasdaq Stock Market under the ticker symbol "WATR."
Founded in 2018, A1R WATER develops technology that generates drinking water from humidity in the air. The company manufactures systems ranging from countertop consumer units to industrial systems capable of producing 3,000 liters per day. A1R WATER also operates water farms and bottling plants, selling finished products to hotels, real estate developers, and sports teams.
The company has established operations in the United Arab Emirates and recently expanded to the United States with a water farm in Fort Lauderdale and a partnership with the Miami HEAT. InvestingPro data shows IPCX maintains strong liquidity with a current ratio of 10.46, suggesting ample resources for expansion. The SPAC’s financial health score of 1.34 indicates potential risks that investors should monitor. Get access to 5+ additional exclusive ProTips and comprehensive financial metrics with InvestingPro to make more informed investment decisions.
"A1R WATER sits at an inimitable flashpoint at the intersection of need, technological advancement, consumer non-durable demand and branding," said Peter Carr, Chief Executive Officer of A1R WATER.
Proceeds from the transaction will primarily fund expansion of A1R WATER’s U.S. business, including a second water plant and the launch of consumer and government services businesses.
Under the agreement, existing A1R WATER shareholders will convert 100% of their equity stakes and are expected to own approximately 62.6% of the combined company upon completion of the transaction. Looking to evaluate more SPAC opportunities? Access detailed financial analysis, Fair Value estimates, and expert insights for thousands of stocks with an InvestingPro subscription.
The transaction has received unanimous approval from the boards of directors of both companies.
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