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 investment banking chief and two others to its post-merger board as it prepares to become a public company, it said in a statement on Friday, confirming a Reuters report.
Space-Eyes said last month it had agreed to go public in the fourth quarter through a merger with special purpose acquisition 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 $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 enter manufacturing through third parties and start worldwide sales, the company said.
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.
“We are assembling a board that reflects the breadth of capabilities required to build a leading defense and intelligence technology company,” said Jatin Bains, founder and CEO of Space-Eyes.
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. Eric Trump brings defense technology investment experience, leadership experience overseeing a large real estate portfolio, and insight into drone-related risks facing high-profile properties, said Peter Wright, CEO of McKinley Acquisition Corp.
“He brings a phenomenal lens from that perspective, regardless of the fact that his father is the president,” Wright said.
Company executives said in July Eric Trump helped introduce potential board candidates but would not serve on the board himself.
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.
Bains said Space-Eyes was previously selected by the U.S. Space Force to develop and test algorithms for tracking airborne, ground and maritime targets, helping the company build relationships in the defense industry. He said Space-Eyes participated in military exercises, including Valiant Shield in Guam and the Mariana Islands, Northern Edge in Alaska, and Arctic Edge, a U.S. Northern Command exercise also held in Alaska.
Board members and investors were attracted by the development of Morpheus, an AI-driven counter-drone system designed to detect and mitigate unmanned aerial threats, said Dylan Monroe, Space-Eyes chief operating officer.
(Reporting by Sabrina Valle and Echo Wang in New York; Editing by Jamie Freed, Barbara Lewis, Rod Nickel)
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