A Can’t miss SPAC??! Agility Robotics CCXI/AGLT

Oh shite. It’s already up 13%

16% now!!!

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BRUN, another SPAC has done really well. MRLN, not so much…

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MRLN, not so much…

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Holding 400 at 12.24

I like the warehouse and logistics angle.
This is an industrial robotics company, not one that’ll do your makeup.

I love GXO as a customer as well as the Robotics as a Service concept.
Companies are signing contracts for usage.

I also like how it spun out of an Oregon State department and how they scale at a warehouse in Oregon.

More research to come.

THE REVENUE MODEL: ROBOT-AS-A-SERVICE (RAAS)
Warehouses do not want to pay 250,000 dollars upfront for a robot and then have to fix it themselves when it breaks. Agility uses a Robot-as-a-Service (RaaS) model. 

Instead of selling the hardware, Agility "rents" out the robot's hours. A logistics company pays a monthly subscription based on usage, and Agility handles the maintenance, cloud software updates, and hardware support.

This lowers the barrier to entry for customers and provides Agility with predictable, recurring software-and-hardware revenue—which is exactly what Wall Street looks for.

VALUATION AND TRANSACTION PROCEEDS

PRE-MONEY VALUATION: 2.5 billion dollars. This is the baseline equity value assigned to Agility for the merger. 

EXPECTED CASH INFUSION: The deal is expected to deliver over 620 million dollars in gross proceeds to the company. This includes 420 million dollars from Churchill's trust account and a 200 million dollar PIPE (Private Investment in Public Equity) anchor investment led by Foxconn at 10 dollars per share. 

INSIDER LOCKUP: Existing shareholders (like Amazon and SoftBank) are rolling 100% of their equity into the new company and accepting a 180-day lockup period. This means insiders cannot immediately dump their shares on day one. 

REVENUE AND PIPELINE
THE BACKLOG: Agility disclosed that it has secured more than 300 million dollars in multi-year contracted orders for its new Digit v5 robot. 

TRACK RECORD: While total historical revenue figures will be fully detailed in the upcoming Form S-4 filing, they revealed that their existing fleet has already logged over 65,000 live operating hours across nine customer facilities. 

UNIT ECONOMICS (THE PATH TO PROFITABILITY)
This is the most critical metric for a robotics company. Right now, a humanoid robot is expensive to build and maintain, but Agility’s Robot-as-a-Service (RaaS) model relies on driving down hourly costs. 

CURRENT HOURLY COST: Operating Digit currently costs Agility roughly 10 to 12 dollars per hour (including hardware wear-and-tear and cloud support). 

THE RENTAL RATE: They deploy these robots to warehouses at an estimated target rate of around 30 dollars per hour. 
TARGET MARGIN PATH: Management’s goal is to scale production at RoboFab to drive the internal operating cost down to 2 to 3 dollars per hour. If they hit that target while maintaining a 30 dollar commercial rate, the gross margins on their robot fleet will be incredibly high (above 80%).

Makes me regret selling 100 to lower my cost basis…
I’m also quite drunk.

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I’ll be watching this one.

I like the robotics theme as well. Thank you for bringing it to the board BB88


I’ll be purchasing today

I’m in. 600 shares at 12.60

Caught it at market open. Little high, but that’s okay with me.

I have it set for $9