Forest Road Acquisition Corp. II and HyperloopTT Announce Termination of Merger Agreement

LOS ANGELES & NEW YORK–(BUSINESS WIRE)–Hyperloop Transportation Technologies, a leading transportation and technology licensing company focused on realizing the hyperloop, and Forest Road Acquisition Corp. II (NYSE: FRXB, FRXB.WS, and FRXB.U), a publicly-traded special purpose acquisition company, have mutually agreed to terminate their previously announced business combination agreement.

Considering the significant time to close the business combination, coupled with prevailing market conditions, both parties decided that terminating the agreement is in the best interest of their respective shareholders and employees.

“While we believe the proposed combination would have accelerated time to market for HyperloopTT’s leading hyperloop technology, we remain committed to the prospects for our company, its transformational transportation technology, and the underlying business opportunity at hand,” said Andres de Leon, Chief Executive Officer of HyperloopTT. “I wish to thank HyperloopTT employees and contributors for their unwavering dedication and commitment throughout this process. Moving forward, we will continue to evaluate financing alternatives, including both public and private capital raises.”

Tom Staggs and Kevin Mayer, Co-CEOs and Co-Chairpersons of the Board of Directors of Forest Road, commented, “While we maintain our belief that HyperloopTT’s technology has the potential to address some of today’s most profound transportation challenges, persistent negative market conditions, coupled with our upcoming expiration date, made the execution of our proposed business combination challenging. We wish Andres and his team all the best in their continued efforts to modernize transportation and positively impact our world.”

About HyperloopTT

Hyperloop Transportation Technologies (www.hyperlooptt.com, “HyperloopTT”) is an innovative transportation and technology company focused on realizing the hyperloop, a system that moves people and goods safely, efficiently, and sustainably by bringing airplane speeds to the ground. Through the use of unique, patented technology and a collaborative business model, HyperloopTT is creating a potential new form of transportation.

HyperloopTT’s European Research and Development Center in Toulouse, France, the aerospace capital of Europe, is home to a full-scale test system. In 2019, HyperloopTT released the first comprehensive feasibility study analyzing a hyperloop system, which found that the system is economically and technically feasible and will generate a profit without requiring government subsidies.

Founded in 2013, HyperloopTT is a global network of more than 800 engineers, creatives, and technologists, with 50 corporate and university partners. Headquartered in Los Angeles, CA, and Toulouse, France, HyperloopTT has offices in North and South America, the Middle East, and Europe.

HyperloopTT is a proud signatory of the United Nations Global Compact, reflecting the company’s commitment to the UN Sustainable Development Goals.

About Forest Road Acquisition Corp. II

Forest Road Acquisition Corp. II, a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses, raised $350 million in March 2021 and its securities are listed on the NYSE under the tickers “FRXB” and “FRXB WS.”