The Lindsay, Ont.-based aerospace engineering company that makes electric vertical takeoff and landing (eVTOL) aircraft agreed to go public through a merger with Pono Capital Three, a special-purpose acquisition company listed on the Nasdaq. (The Logic)

Talking point: The deal values Horizon at US$96 million while the combined company’s pro forma equity value is expected to be US$216 million before expenses. The transaction is expected to close in the first quarter of next year at the latest, subject to closing conditions. Horizon will use the proceeds towards developing its flagship hybrid aircraft. The announcement comes shortly after the Canadian government pledged $350 million toward its new Initiative for Sustainable Aviation Technology, which Horizon CEO Brandon Robinson said will lead to better transportation capabilities, growth in the domestic supply chain and other benefits. SPACs surged in popularity in 2020, but that excitement has waned. A handful of Canadian firms have agreed to SPAC deals recently, including Quebec City-based auto software firm LeddarTech and Oakville, Ont.-headquartered plant-based food maker Borealis.