By Sabrina Valle and Echo Wang
NEW YORK, Aug 21 (Reuters) – Drone technology company Space-Eyes, backed by Eric Trump, will appoint a former Delta Force officer, a former Morgan Stanley investment banking chief and two others to its post-merger board as it prepares to become a public company, according to two people familiar with the matter.
Space-Eyes said last month it had agreed to go public in the fourth quarter through a special purpose acquisition company, or SPAC, merger with blank-check company McKinley Acquisition Corp.
The deal valued the combined company at $638 million, including cash held by the SPAC, and assigned an enterprise value of $370 million to the operating business.
The Miami-based research-and-development company, which has said it generates about $1 million in annual revenue, develops AI-powered geospatial intelligence and counter-drone technologies for governments and agencies.
The board appointments are intended to bolster the company’s expertise in national security, defense manufacturing, mergers and acquisitions, capital markets and corporate governance as it prepares to scale up, enter manufacturing through third parties and start worldwide sales, the people said, declining to be identified as the information is not yet public.
The public company directors are expected to include retired U.S. Army Lieutenant Colonel Jim Reese, founder of security consultancy TigerSwan; Terry Meguid, a former head of worldwide investment banking at Morgan Stanley; Wharton School management professor Harbir Singh; and aerospace entrepreneur Norm Christensen, people close to the discussions said.
ERIC TRUMP AN INVESTOR, ADVISER
U.S. President Donald Trump’s son Eric joined Space-Eyes in the second quarter as its third-largest investor and a strategic adviser.
Company executives said in July Eric Trump helped introduce potential board candidates but would not serve on the board himself.
Reese spent 25 years in the U.S. Army, including assignments with the 75th Ranger Regiment and the special operations unit commonly known as Delta Force, according to the people.
Singh, a professor at the University of Pennsylvania’s Wharton School, has long served on the board of Space-Eyes, which was created in 2001. He specializes in strategy, innovation and acquisitions.
Christensen previously owned aerospace manufacturer AAE Aerospace before its acquisition by Karman Space & Defense, the people said.
Meguid spent 25 years at Morgan Stanley, where he served as head of worldwide investment banking, before leaving in 2005 and becoming a founding partner of advisory firm Perella Weinberg Partners.
The company has said its valuation is based on anticipated growth in demand for counter-drone systems, military intelligence software and autonomous defense technologies rather than existing revenue.
The valuation includes $80 million worth of shares that may be issued later if specified targets are met. The deal assumes McKinley’s trust account will contribute about $176 million in cash to the combined company.
The valuation also includes the first $12 million tranche of a planned private investment from outside investors. Eric Trump’s investment amount was not disclosed.
The combined company is expected to trade on Nasdaq under the ticker symbol CUAS, subject to regulatory and shareholder approvals.
(Reporting by Sabrina Valle and Echo Wang in New York; Editing by Jamie Freed and Barbara Lewis)
