Damon Motors revs up to go public on the Nasdaq via reverse merger

The reverse merger will be completed with a UK-based spinoff of Inpixon.

Vancouver-based electric motorcycle company Damon Motors is looking to list on the Nasdaq through a reverse merger with a spin-off of Inpixon, a California-based IoT company.

Inpixon plans to spin off its United Kingdom-based data analytics and statistical visualization solutions business into a holding company called Grafiti, which will then be acquired by Damon “to which Damon and a newly-formed, wholly-owned subsidiary of Grafiti will amalgamate and form a continuing entity, which will be wholly owned by Grafiti.”

The combined company will then be listed on the Nasdaq, pending approval of its application.

Founded in 2017 by Jay Giraud and Dom Kwong as Damon Motorcycles, the company initially developed safety innovations for motorcycles using sensor fusion and artificial intelligence (AI), with a broader goal of ensuring that by 2030, there would be no fatal accidents on vehicles equipped with their systems. Damon’s advanced warning system for motorcycles was created to help protect riders who, without the protective enclosure of a car, are more exposed to danger.

Damon now produces its own line of electric motorcycles itself, including its “superbike” models HyperSport and HyperFighter. Damon claimed it had secured more than $85 million USD ($117 million CAD) for its motorcycles. A statement by the companies said Inpixon’s independent financial advisory firm ascertained Damon’s enterprise value to be up to $284 million USD ($393 million CAD).

Damon raised a $2.5-million seed round in 2019, backed by firms like Round13 Capital. According to Round13 then-managing partner Bruce Croxon, it was out of character for the fund to buy in at seed-level, but Croxon said Damon appeared to be a “potential game changer.”

The startup went on to secure $3 million in 2020 as well as acquire San Francisco-based Mission Motors’ intellectual property, including an electric motor, inverter, and other property to be used in Damon’s electric vehicle platform.

RELATED: Damon Motors secures $37.9 million CAD for its AI-backed electric motorcycles

In December 2021, Damon secured $37.9 million in Series B funding as it went from product testing into manufacturing, following the announcement of a planned 110,000 square-foot manufacturing facility to be built in Surrey, British Columbia.

“We’re thrilled to partner with Damon on their journey and to provide our shareholders an additional opportunity to maximize shareholder value,” said Inpixon CEO Nadir Ali. “Damon has achieved some remarkable innovations and generated an impressive level of demand and enthusiasm. We’re excited for Damon and its growing community of future Damon riders.”

Inpixon, which trades on the Nasdaq under the symbol INPX, develops real-time location systems for industrial use through its Indoor Intelligence product. The company says its technology allows factories and warehouses to track equipment and personnel, as well as enforce “no-phone zones.” In July, Inpixon entered into a merger agreement with XTI Aircraft, a Denver-based aviation company developing a vertical take-off and landing aircraft.

BetaKit has reached out to a representative of the companies with questions regarding the future of Damon’s Canadian operations, but did not receive a response by press time.

According to a statement issued by the companies, the business combination has been approved unanimously by the board of directors of both Inpixon and Damon.

Feature image courtesy Damon Motors

Alex Riehl

Alex Riehl

Alex Riehl is a staff writer and newsletter curator at BetaKit with a Bachelor of Journalism from Carleton University. He's interested in tech, gaming, and sports. You can find out more about him at alexriehl.com or @RiehlAlex99 on Twitter.

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