Vancouver-based RealWear is staying private, announcing Tuesday that it has called off plans to go public in a deal that valued the augmented reality company at $376 million. RealWear blamed the decision on “current market conditions.”
RealWear makes headsets that factory workers, repair personnel and others wear to assist them while they’re doing the jobs.
The rugged devices, often affixed to hardhats, run on Google’s Android smartphone operating system. RealWear’s technology uses cameras and microphones to enable workers to consult with supervisors elsewhere or to call up online instructions for guidance – then view the information while they work.
RealWear announced in February that it planned to merge with a publicly traded investment fund, known as a special purpose acquisition company, or SPAC, and take over that fund’s stock listing.
“Due to current market conditions, we will no longer be pursuing the specific business combination agreement with Cascadia Acquisition Corp.,” RealWear CEO Andrew Chrostowski said in a written statement. He said the company is continuing to grow and will pursue alternative funding, including a new private investment round.
The market for new stock offerings has been cool for months given rising interest rates, high inflation and global economic uncertainty. SPAC deals, though, have faced special challenges.
SPACs became a popular way for companies to go public in 2021 without the regulatory requirements, expense and investor scrutiny associated with conventional stock offerings.
SPACs fell out of favor last year after several prominent companies failed to meet their business objectives. That caused investors to be more cautious in backing companies seeking to go public with a SPAC.
In the Portland area, battery maker ESS Tech and vacation rental management company Vacasa each proved hugely disappointing to investors after their SPAC debuts. Both stocks more than 80% of their value last year.
RealWear employs around 130, including about 20 at its Vancouver headquarters. It has reported raising more than $120 million in funding.
RealWear had revenue of $20.5 million last year, according to filings associated with the failed SPAC deal, up from $13.9 million three years earlier.
— Mike Rogoway | mrogoway@oregonian.com | 503-294-7699
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