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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 5, 2024
Mars Acquisition Corp.
(Exact name of registrant as specified in its charter)
Cayman Islands |
|
001-41619 |
|
N/A |
(State or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification No.) |
Americas Tower, 1177 Avenue of The
Americas, Suite 5100
New York, NY |
|
10036 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (888)-667-6277
Not Applicable
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:
x |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange on which registered |
Units, each consisting of one ordinary share, par value $0.000125, and one right entitling the holder to receive 2/10 of an ordinary share |
|
MARXU |
|
The Nasdaq Stock Market LLC |
Ordinary Shares, $0.000125 par value |
|
MARX |
|
The Nasdaq Stock Market LLC |
Rights to receive two-tenths (2/10) of one ordinary share |
|
MARXR |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Item 7.01. |
Regulation FD Disclosure. |
On September 5, 2023,
Mars Acquisition Corp. (“Mars”), a Cayman Island exempted company, entered into a Business Combination Agreement (
“Business Combination Agreement”) with ScanTech AI Systems Inc., a Delaware corporation and a wholly owned subsidiary
of Mars (“Pubco”), Mars Merger Sub I Corp., a Cayman Islands exempted company and a wholly owned subsidiary of Mars
(“Purchaser Merger Sub”), Mars Merger Sub II LLC, a Delaware limited liability company and a wholly owned subsidiary
of Pubco (“Company Merger Sub”), ScanTech Identification Beam Systems, LLC, a Delaware limited liability company (“ScanTech”),
and Dolan Falconer in the capacity as the representative from and after the Effective Time for the Company Holder Participants as of immediately
prior to the Effective (the “Seller Representative”). The transactions contemplated by the Business Combination Agreement
are hereinafter referred to collectively as the “Business Combination.”
Filed herewith as Exhibit
99.1 hereto and incorporated by reference herein is the investor presentation, dated September 2024 (the “Investor Presentation”),
that will be used by ScanTech and Mars with respect to the transactions contemplated by the Business Combination Agreement.
The information in this Item
7.01, including Exhibit 99.1, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act,
or otherwise subject to liabilities under that section, and shall not be deemed to be incorporated by reference into the filings of Mars
or Pubco under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filings. For the avoidance
of doubt, Mars intends for this Form 8-K, including Exhibit 99.1, to satisfy the requirements of Rule 165(a) and Rule 425(a) under the
Securities Act. This Current Report on Form 8-K will not be deemed an admission as to the materiality of any information of the information
in this Item 7.01, including Exhibit 99.1.
Important Additional Information About the
Business Combination and Where to Find It
In connection with the proposed
Business Combination, Pubco has filed a registration statement on Form S-4 with the SEC, which includes a preliminary prospectus with
respect to its securities to be issued in connection with the Business Combination and a preliminary proxy statement with respect to the
extraordinary general meeting at which Mars’ shareholders will be asked to vote on the proposed Business Combination. Each of Mars,
Pubco and ScanTech urge investors, shareholders or members, and other interested persons to read the Form S-4, including the proxy statement/prospectus,
any amendments thereto, and any other documents filed with the SEC, before making any voting or investment decision because these documents
will contain important information about the proposed Business Combination. After the Form S-4 has been declared effective, Mars will
mail the definitive proxy statement/prospectus to shareholders of Mars as of a record date to be established for voting on the Business
Combination. Mars’ shareholders will also be able to obtain a copy of such documents, without charge, by directing a request to:
Mars Acquisition Corp., Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, New York, 10036. These documents, once available,
can also be obtained, without charge, at the SEC’s website www.sec.gov.
INVESTMENT IN ANY SECURITIES
DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, THE ISRAELI SECURITIES AUTHORITY, OR ANY OTHER REGULATORY AUTHORITY,
NOR HAS ANY SECURITIES AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE PROPOSED TRANSACTIONS PURSUANT TO WHICH ANY SECURITIES ARE
TO BE OFFERED OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Participants in Solicitation
Mars and ScanTech and their
respective directors, executive officers and other persons may be deemed to be participants in the solicitation of proxies from Mars’
shareholders with respect to the proposed transaction. Information about the directors and executive officers of Mars is set forth in
its final prospectus, dated as of February 13, 2023, and filed with the SEC on February 14, 2023, and is available free of charge
at the SEC’s website at www.sec.gov or by directing a request to: Mars Acquisition Corp., Americas Tower, 1177 Avenue of The Americas,
Suite 5100, New York, New York 10036. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation
of Mars shareholders in connection with the proposed transaction will be set forth in Mars’ and Pubco’s filings with the SEC,
including the proxy statement/prospectus and other relevant materials filed with the SEC in connection with the Business Combination when
they become available.
No Offer or Solicitation
This Current Report on Form 8-K
is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential
transaction and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Mars, ScanTech or Pubco, nor
shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except
by means of a prospectus meeting the requirements of the Securities Act.
Forward-Looking Statements
Certain statements in this
Current Report on Form 8-K may be considered “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and are based on beliefs and assumptions and on information currently available to Mars and ScanTech. In
some cases, you can identify forward-looking statements by the following words: "may," "will," "could,"
"would," "should," "expect," "intend," "plan," "anticipate," "believe,"
"estimate," "predict," "project," "potential," "continue," "ongoing," "target,"
"seek" or the negative or plural of these words, or other similar expressions that are predictions or indicate future events
or prospects, although not all forward-looking statements contain these words.
Any statements that refer
to expectations, projections or other characterizations of future events or circumstances, including, without limitation, projections
of market opportunity and market share; ScanTech’s or Pubco’s business plans, including any plans to expand; the sources and
uses of cash from the proposed transaction; the anticipated enterprise value of the combined company following the consummation of the
proposed transaction; any benefits of ScanTech’s partnerships, strategies or plans; anticipated benefits of the proposed transaction;
and expectations related to the terms and timing of the proposed transaction are also forward-looking statements. In addition, in order
to be able to execute on its business plan, ScanTech will be required to repay a significant amount of its current liabilities. These
statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements
to be materially different from those expressed or implied by these forward-looking statements.
These statements are based
on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. Neither Mars nor
ScanTech can assure you that the forward-looking statements in this communication will prove to be accurate. These forward-looking statements
are subject to a number of risks and uncertainties, including, among others: (i) the inability of the parties to complete the business
combination due to, among other things, (a) the failure to obtain required approvals from Mars’ shareholders, ScanTech’s members,
or any third parties whose approval is required; (b) the failure to timely obtain consent or approvals to the business combination from
any governmental agencies or entities whose consent or approval is required (including, without limitation, the Transportation Security
Administration (“TSA”), and any required consents or clearances by The Committee on Foreign Investment in the United States
(“CFIUS”); (c) ScanTech’s inability to complete its pre-closing recapitalization (including the conversion of approximately
$70 million of existing indebtedness into equity of ScanTech of which approximately $60 million is held by insiders, and other third parties,
who have indicated their intention to participate in the conversion); or (d) the inability or failure of Mars or ScanTech to satisfy any
of the other closing conditions in the Business Combination Agreement; (ii) the occurrence of any event that could give rise to the termination
of the Business Combination Agreement; (iii) the inability of the parties to recognize the anticipated benefits of the Business Combination;
(iv) the amount of redemption requests made by Mars’ public shareholders and the risk that all or substantially all of Mars’
shareholders will elect to redeem their shares in connection with the transaction; (v) costs and expenses related to the transaction,
including the risk that the costs and expenses will exceed current estimates; (vi) the inability of Pubco to continue as a going concern;
(vii) the risk that the transaction disrupts current plans and operations of ScanTech as a result of the announcement and consummation
of the transaction; (viii) potential claims against ScanTech from vendors and other third parties as a result of prior agreements or other
obligations of ScanTech or its affiliates; (ix) the inability of Mars prior to the transaction, and the Pubco following completion of
the transaction, to satisfy and maintain (in the case of the Mars) and to obtain and maintain (in the case of Pubco) the listing of their
respective shares on Nasdaq; (x) the outcome of any existing or potential litigation, government or regulatory proceedings; (xi) the inability
of the parties to obtain a transaction financing; (xii) the possibility that Mars, ScanTech, or Pubco may be adversely affected by other
economic, business and/or competitive factors; (xiii) the inability of ScanTech to manufacture, or arrange the manufacturing, of products
that may be ordered by customers; (xiv) the inability of ScanTech to retain and increase sales to existing customers, attract new customers
and satisfy customers’ requirements; (xv) competition from larger companies that have greater resources, technology, relationships
and/or expertise; (xvi) the future financial performance of the combined company following the transaction and its ability to achieve
profitability in the future; (xvii) the inability of ScanTech to satisfy past and future payroll and other obligations and liabilities;
(xviii) ScanTech’s significant obligations to the Internal Revenue Service in connection with unpaid federal payroll taxes; (xix)
the fact that ScanTech is technically insolvent and may not have sufficient funds to execute on its business plan or continue its operations,
the inability of ScanTech or risk that the combined company will become solvent and continue operations following completion of the transaction;
(xx) the inability of ScanTech and Pubco to complete successful testing of their products; (xxi) the inability of ScanTech’s products
to be approved for placement on the qualified products list of the CheckPoint Property Screening System (CPSS) program of the TSA (and,
if approved, to be granted funds from the CPSS program), and to obtain or maintain any required third-party certificates; (xxii) the risk
that ScanTech’s patents will expire or not be renewed; (xxiii) the fact that ScanTech’s assets, including its intellectual
property, are subject to security interests of creditors, and the loss of such assets, particularly intellectual property, would preclude
ScanTech from conducting its business; and (xxiii) those other risks and uncertainties set forth in documents of Mars or Pubco filed,
or to be filed, with the SEC.
These statements involve risks,
uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different
from those expressed or implied by these forward-looking statements. These statements are based on a combination of facts and factors
currently known and projections of the future, which are inherently uncertain. Neither Mars, ScanTech nor Pubco can assure you that the
forward-looking statements in this Current Report on Form 8-K will prove to be accurate.
In light of the significant
uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by Mars, ScanTech,
or Pubco or their respective directors, officers or employees or any other person that Mars, ScanTech or Pubco will achieve their objectives
and plans in any specified time frame, or at all. The forward-looking statements in this Current Report on Form 8-K represent the views
of Mars and ScanTech as of the date of this communication. Subsequent events and developments may cause those views to change. Neither
Mars, ScanTech nor Pubco undertakes any obligation to update or revise the forward-looking statements, whether as a result of new information,
future events or otherwise.
Item 9.01. |
Financial Statements and Exhibits |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: September 5, 2024 |
Mars Acquisition Corp. |
|
|
|
By: |
/s/ Karl Brenza |
|
Name: |
Karl Brenza |
|
Title: |
Chief Executive Officer |
Exhibit
99.1
| Investor
Presentation
September 2024 |
| About This Presentation :This presentation (“Presentation”) has been prepared in connection making an evaluation with respect to a proposed business combination (the
“Transaction”) between Mars Acquisition Corp. (“Mars”) and ScanTech Identification Beam Systems, LLC (“ScanTech”). This Presentation does not purport to contain all of
the information that may be required to evaluate the Transaction. This Presentation is not intended to form the basis of any investment decision by the recipient and
does not constitute investment, tax or legal advice. No representation or warranty, express or implied, is or will be given by Mars or ScanTech or Pubco or any of their
respective affiliates, directors, officers, employees or advisers or any other person as to the accuracy or completeness of the information in this Presentation or any other
written, oral or other communications transmitted or otherwise made available to any party in the course of its evaluation of the Transaction, and no responsibility or
liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. Accordingly,
none of Mars or ScanTech or Pubco or any of their respective affiliates, directors, officers, employees or advisers or any other person shall be liable for any direct,
indirect or consequential loss or damages suffered by any person as a result of relying on any statement in or omission from this Presentation and any such liability is
expressly disclaimed.
Liquidity Disclosure: ScanTech is effectively insolvent and does not currently have sufficient funds to execute on its business plan or continue its operations. At June 30,
2024, ScanTech had approximately $0.7 million in current assets and approximately $77 million in current liabilities. These include significant obligations to the Internal
Revenue Service for unpaid payroll taxes (approximately $4.5 million) as well as to note holders (approximately $80.0 million including long-term notes, including
principal, default penalties and accrued interest), a judgment creditor for approximately $1.5 million and other third parties including trade payables. Although it is
contemplated that certain of ScanTech’s note holders may convert their notes into equity of ScanTech, there can be no assurance that, following the consummation of
the business combination, ScanTech will have sufficient working capital to conduct its operations. Among other things, the Business Combination Agreement does not
contain any minimum cash requirement as a closing condition, and there is no assurance that any funds will be available to ScanTech immediately following the closing.
Accordingly, ScanTech’s obligations to creditors and its other obligations (including, without limitation, the costs associated with ScanTech’s obligations as a public
company, including the costs of preparing required SEC filings, the compensation of its directors and executive management team, and the need to procure directors’
and officers’ liability insurance), may prevent ScanTech from being able to devote any funds to its operations following the business combination. There can therefore be
no assurance that ScanTech will be able to continue as a going concern.
page 2
Forward-Looking Statements: This Presentation contains forward-looking statements within the meaning of section 27A of the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934 (the “Exchange Act”) that are based on beliefs and assumptions and on information
currently available to Mars and ScanTech. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,”
“expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these
words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any
statements that refer to expectations, projections or other characterizations of future events or circumstances, including, without limitation, projections of market
opportunity and market share; ScanTech’s or Pubco’s business plans, including any plans to expand; the sources and uses of cash from the proposed transaction; the
anticipated enterprise value of the combined company following the consummation of the proposed transaction; any benefits of ScanTech’s partnerships, strategies or
plans; anticipated benefits of the proposed transaction; and expectations related to the terms and timing of the proposed transaction are also forward-looking
statements. In addition, in order to be able to execute on its business plan, ScanTech will be required to repay a significant amount of its current liabilities. These |
| page 3
statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from
those expressed or implied by these forward-looking statements. These statements are based on a combination of facts and factors currently known and projections of
the future, which are inherently uncertain. Neither Mars nor ScanTech can assure you that the forward-looking statements in this communication will prove to be
accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others: the inability of the parties to complete the
business combination due to, among other things, (i) the failure to obtain required approvals from Mars’ shareholders, ScanTech’s members, or any third parties whose
approval is required; (ii) the failure to timely obtain consent or approvals to the business combination from any governmental agencies or entities whose consent or
approval is required (including, without limitation, the Transportation Security Administration (“TSA”), and any required consents or clearances by the Committee on
Foreign Investment in the United States; (iii) ScanTech’s inability to complete its pre-closing recapitalization (including the conversion of approximately $70 million of
existing indebtedness into equity of ScanTech of which approximately $60 million is held by insiders, and other third parties, who have indicated their intention to
participate in the conversion); or (iv) the inability or failure of Mars or ScanTech to satisfy any of the other closing conditions in the Business Combination Agreement;
the occurrence of any event that could give rise to the termination of the Business Combination Agreement; the inability of the parties to recognize the anticipated
benefits of the Business Combination; the amount of redemption requests made by Mars’ public shareholders and the risk that all or substantially all of Mars’
shareholders will elect to redeem their shares in connection with the transaction; costs and expenses related to the transaction, including the risk that the costs and
expenses will exceed current estimates; the inability of Pubco to continue as a going concern; the risk that the transaction disrupts current plans and operations of
ScanTech as a result of the announcement and consummation of the transaction; potential claims against ScanTech from vendors and other third parties as a result of
prior agreements or other obligations of ScanTech or its affiliates; the inability of Mars prior to the transaction, and the Pubco following completion of the transaction, to
satisfy and maintain (in the case of the Mars) and to obtain and maintain (in the case of Pubco) the listing of their respective shares on Nasdaq; the outcome of any
existing or potential litigation, government or regulatory proceedings; the inability of the parties to obtain a transaction financing; the possibility that Mars, ScanTech, or
Pubco may be adversely affected by other economic, business and/or competitive factors; the inability of ScanTech to manufacture, or arrange the manufacturing, of
products that may be ordered by customers; the inability of ScanTech to retain and increase sales to existing customers, attract new customers and satisfy customers’
requirements; competition from larger companies that have greater resources, technology, relationships and/or expertise; the future financial performance of the
combined company following the transaction and its ability to achieve profitability in the future; the inability of ScanTech to satisfy past and future payroll and other
obligations and liabilities; ScanTech’s significant obligations to the Internal Revenue Service in connection with unpaid federal payroll taxes; the fact that ScanTech is
technically insolvent and may not have sufficient funds to execute on its business plan or continue its operations, the inability of ScanTech or risk that the combined
company will become solvent and continue operations following completion of the transaction; the inability of ScanTech and Pubco to complete successful testing of
their products; the inability of ScanTech’s products to be approved for placement on the qualified products list of the CheckPoint Property Screening System (“CPSS”)
program of the TSA (and, if approved, to be granted funds from the CPSS program), and to obtain or maintain any required third-party certificates; the risk that
ScanTech’s patents will expire or not be renewed; the fact that ScanTech’s assets, including its intellectual property, are subject to security interests of creditors, and the
loss of such assets, particularly intellectual property, would preclude ScanTech from conducting its business; and other risks and uncertainties set forth in documents of
Mars or Pubco filed, or to be filed, with the SEC.In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a
representation or warranty by Mars, ScanTech, or Pubco or their respective directors, officers or employees or any other person that Mars, ScanTech or Pubco will
achieve their objectives and plans in any specified time frame, or at all. The forward-looking statements in this Presentation represent the views of Mars and ScanTech as
of the date of this communication. Subsequent events and developments may cause those views to change. Neither Mars, ScanTech nor Pubco undertakes any
obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. |
| Industry and Market Data: This Presentation contains estimates and other statistical data made by independent parties and by ScanTech relating to market size and
growth and other data about ScanTech’s industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such
estimates. In addition, projections, assumptions, and estimates of the future performance of the markets in which ScanTech operates are necessarily subject to a high
degree of uncertainty and risk.
Trademarks and Trade Names: This Presentation contains trademarks, service marks, trade names and copyrights of other companies, which are the property of their
respective owners. The use thereof in this Presentation does not imply an affiliation with, or endorsement by, the owners of such trademarks, service marks, trade names
and copyrights. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM,
SM or symbols, but such references are not intended to indicate, in any way, that Mars or ScanTech will not assert, to the fullest extent under applicable law, their rights
or the right of the applicable licensor to these trademarks, service marks, trade names and copyrights.
No Offer or Solicitation: This Presentation is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the
potential transaction and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Mars, ScanTech or Pubco, nor shall there be any sale of
any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of
such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.
Additional Information: In connection with the proposed Business Combination, which will include a preliminary prospectus with respect to its securities to be issued in
connection with the Business Combination and a preliminary proxy statement with respect to the extraordinary general meeting at which Mars’ shareholders will be
asked to vote on the proposed Business Combination. Each of Mars, Pubco and ScanTech urge investors, shareholders or members, and other interested persons to
read, the Form S-4, including the proxy statement/prospectus, any amendments thereto, and any other documents filed with the SEC, before making any voting or
investment decision because these documents will contain important information about the proposed Business Combination. After the Form S-4 has been filed and
declared effective, Mars will mail the definitive proxy statement/prospectus to shareholders of Mars as of a record date to be established for voting on the Business
Combination. Mars’ shareholders will also be able to obtain a copy of such documents, without charge, by directing a request to: Mars Acquisition Corp., Americas
Tower, 1177 Avenue of The Americas, Suite 5100, New York, New York, 10036. These documents, once available, can also be obtained, without charge, at the SEC’s
website www.sec.gov.
Participants in the Solicitation: Mars and ScanTech and their respective directors, executive officers and other persons may be deemed to be participants in the
solicitation of proxies from Mars’ shareholders with respect to the proposed transaction. Information about the directors and executive officers of Mars is set forth in its
final prospectus, dated as of February 13, 2023, and filed with the SEC on February 14, 2023 , and is available free of charge at the SEC’s website at www.sec.gov or by
directing a request to: Mars Acquisition Corp., Americas Tower, 1177 Avenue of The Americas, Suite 5100, New York, New York 10036. Information regarding the persons
who may, under SEC rules, be deemed participants in the solicitation of Mars shareholders in connection with the proposed transaction will be set forth in Mars’ and
Pubco’s filings with the SEC, including the proxy statement/prospectus and other relevant materials filed with the SEC in connection with the Business Combination when
they become available.
page 4 |
| Proposed Transaction Summary
page 5
Transaction Overview
• ScanTech Identification Beam Systems LLC (“ScanTech”) and Mars Acquisition Corp. (“MARX”) executed a
definitive merger agreement to enter a business combination (the “transaction”)
• Target Transaction anticipated to close in Q3 2024
• Upon the closing of the Transaction, ScanTech will be a publicly listed company on NASDAQ under the
ticker: STAI
1. Pro forma equity figure assumes 80% redemptions and will be allocated to ScanTech holders and creditors accordingly.
Financials and Valuation
• The Transaction contemplates a post-money equity value of No less than $150M; adjusted enterprise value
of ~$231M
• ScanTech members are rolling 100% of their equity as part of the Transaction
• ScanTech members and creditors at the consummation are expected to received ~52% of the combined
company’s pro forma equity 1 |
| page 6
What MARX likes about ScanTech
✓ ‘Fixed-Gantry’ technology provides numerous competitive advantages compared to rotating gantry including
faster through put, lower cost for units, less maintenance, modular components, enhanced threat recognition
✓ Large TAM including aviation, logistics and infrastructure market
✓ $60 million, 10-year technology investment that has begun commercial deployment
✓ One of five companies originally invited to participate in the highest tier of TSA explosive detection approval
✓ Existing patents (through perpetual exclusive license), propriety AI and ML algorithms provide strong barriers to
competition
✓ Scanners utilize AI machine learning technology increasing efficiency with each bag scanned
✓ Strong management and experienced, high-profile board |
| page 7
WHO WE ARE
Dolan Falconer
Founder and CEO
Karl Brenza
MARX Chairman & CEO
Rocky Starns
Chief Technology Officer |
| ✓ ScanTech develops systems, software and artificial intelligence that aim to
protect the world’s most sensitive security checkpoints
page 8
What we do
✓ Developed and currently operates a core AI platform that leverages machine
learning for continual performance improvement
✓ Scanning systems are engineered to automatically locate, discriminate and
identify threat materials and items of interest
✓ SENTINEL is fastest TSA approved carry-on baggage CT scanning system, with
a 4x improvement over requirement |
| page 9
Investment Highlights
Cutting-Edge Technology
Total Addressable
Market
High throughput and multiple plane design
allow for faster and safer screening
Rapidly growing market fueled by increasing
levels of Global threats
Differentiated algorithmic artificial intelligence combined
with ‘Fixed-Gantry’ CT will lead to significant
improvements in cost and operations
New private sector demand combined with
commercial infrastructure upgrades create multiple
avenues for growth
Leadership team brings together seasoned
professionals with extensive experience in security,
technology development and business management
Strong Competitive
Advantages
Multiple Strategies to
Fuel Growth
Experienced
Management Team |
| Governments and Private Sector Both Driving Demand Growth
Source: Polaris Market Research 2022; Mordor Intelligence 2023.
Both governments and private sector organizations are accelerating infrastructure security expenditure in the wake of enhanced
cybersecurity and physical security threats.
Global Security Screening Market ($Bn) Global Infrastructure Protection Market ($Bn)
page 10
The global security screening market is expected to reach approximately $10.5 billion by 2029, growing at
approximately 6.5% per year.
The global infrastructure protection market is expected to reach ~$192 billion by 2029 and includes ports, industry,
energy, defense, financial institutions, transportation and logistics, and other key market segments specifically
targeted by ScanTech.
148.5
191.8
0
50
100
150
200
250
2024 2029
7.61
10.45
0
2
4
6
8
10
12
2024 2029 |
| ScanTech’s potential customer market is massive – millions of global ports of entry and logistics hubs, many multiples of that in the
form of scanning equipment.
Governmental
Agencies
Private
Sector
ScanTech’s technology is an
innovative platform for protecting
the critical infrastructure of both
private enterprise – logistics
companies, e-commerce, real
estate, energy, hospitality, and
others – and governmental
agencies and worldwide airports.
Airports
Sea Ports
Border Crossings
Prisons
Postal
Services
Parcel Carriers
Real Estate
Sports
Hotels
Cargo
page 11
Energy
Global Customer Opportunity |
| page 12
ScanTech’s corporate goals over the next three-to-five years…
Receive ECAC Approval
1
st Quarter 2025
Receive TSA Approval
2
nd Quarter 2025
Achieve revenue run rate of
$300M – $500M |
| ScanTech’s Technology is Field-Proven
In 2018 and 2019, ScanTech’s Sentinel system was deployed at San Diego and Philadelphia airports in real-world field testing,
which resulted in passenger screening 4x faster than traditional scanners and 3x faster than the nearest next-generation
competition.
TSA deployed and managed
Sentinel for domestic and
international flight carry on baggage
Bags were processed and screened
fully without removing liquids,
laptops and other items
Operated fully by TSA at Delta
terminal at Philadelphia International
Airport and San Diego International
Airport
page 13 |
| Deployment Overview
• SENTINEL CT Scanners Deployed at Darlington Nuclear Power Plant
Effectively and rapidly screening briefcases, backpacks, toolboxes, lunchboxes,
parcels and packages of employees and visitors entering the plant.
SENTINEL CT processes facility employees and visitors three times faster than the nearest
CT competition
After initial deployments at the Pickering and Darlington Nuclear Power Plants, imaging was
demonstrated to be much better than the existing scanners being replaced by Sentinel ‘Fixed-Gantry’ CT scanners
ScanTech is working in partnership with OPG to optimize Sentinel CT AI-driven detection
algorithms for processing its employees and visitors efficiently through its facility checkpoints
and plans to replace all existing scanners with the new Sentinel CT by the end of the year.
SENTINEL CT Selected To Protect the Nuclear Assets of Ontario Power
Genera
Challenges
• Ensure Canadian nuclear power infrastructure is protected from evolving security threats
▪ Prevent explosives/weapons entry
▪ Efficiently process thousands daily
▪ Minimize false alarms and downtimes
Results
• SENTINEL CT was selected over all competitive CT scanners for this critical infrastructure
protection role. Thirteen (13) SENTINEL CT scanners have been acquired for deployment at
OPG’s Pickering and Darlington Nuclear Power Plants
CONFIDENTIAL page 14
page 14
Leading the Way For Critical Infrastructure Protection
SENTINEL CT Selected To Protect the Nuclear Assets of Ontario Power Generation (OPG) |
| Key Differentiation — Fixed-Gantry vs. Rotating-Gantry CT
Fixed-Gantry CT technology provides the greatest performance and estimated minimized total cost of ownership.
ScanTech’s Fixed-Gantry CT Technology
page 15
• Static scan compared to high-speed spin
• Throughput is only limited by computing power
• Can provide three-dimensional imagery
• Better reliability, lower maintenance capex
• Seamless integration with machine learning and AI
tools
Fixed-Gantry: Faster, More Durable, Lower TCO
Rotating Gantry: Slower, Higher Maintenance, Higher TCO
• Developed in 1972 for medical use
• Throughput increased only via rotational speed
• Requires enhanced floor reinforcement
• Data less reliable and less safe
• Less reliable, higher maintenance capex
SENTINEL X-ray projection geometry. The red box
shows a slice parallel to the tunnel entrance plane
of the field of view of the scanner |
| FIXED-GANTRY
DESIGN
MULTIPLE
PLANES
• ScanTech can process 400-800 bins per hour compared to competition’s limited 170 per hour1
• Belt speed is not limited by rotating-gantry speed
HIGH
THROUGHPUT
• ScanTech’s Fixed-Gantry CT systems will be compatible at every airport and commercial facility because they utilize
standard 120-240VAC single phase electrical service and do not require infrastructure upgrades prior to installation
• Out-of-box, plug-and-play capability allows for same-day installation
UNIVERSAL
COMPATIBILITY
MODULAR
DESIGN
The Company has invested more than $60 million into the development of its proprietary technology which the Company believes
has distinct competitive advantages.
Significant Competitive Advantages
page 16
REDUCED
MAINTENANCE
EASE OF
INSTALLATION
• Modular scalable design enables seamless replacement of core components, facilitating efficient maintenance and system upgrades
to incorporate component advances and higher X-ray energy / flux ratings
• Fixed-Gantry CT design eliminates the traditional wear and tear associated with rotating-gantry machines, reducing
operating & maintenance costs resulting in minimal downtime
• Only 'Fixed-Gantry' CT manufacturer in TSA’s Checkpoint Property Scanning System (CPSS) qualification program
• ‘Fixed-Gantry’ CT technology has been tested and certified to TSA’s Advanced Technology (AT) Tier 2 explosive detection standard
• ‘Fixed-Gantry’ design has substantially lower component costs versus rotating-gantry scanners
• Four (4) integrated and interlaced projections provide four independent and unobstructed views of target contents
• The three (3) inspection axes created provide superior X-ray interrogation and material discrimination vs conventional single-slice CT systems
1. OIG Report 21-69
September 23, 2021 |
| Virtual Sentinel, ScanTech’s proprietary AI application, utilizes an algorithm that creates synthetic data indistinguishable from actual
scans. Machine learning processes real world and synthetic data to create vastly improved outcomes.
Sentinel Artificial Intelligence: How it Works
page 17
Performance of Virtual Sentinel and Synthetic data indistinguishable from live scans.
Virtual Sentinel CT Scanner model replicates real-world system architecture, parameters, and performance.
Virtual Sentinel Model & Synthetic Data accurately replicate material and configuration scenarios not captured
during live data collection contributing to superior algorithm development and associated upgrades.
Content Segmentation & Target Area Selection Algorithms significantly improved with Artificial Intelligence
derived predictions.
Proprietary AI Physics-Based Models & Synthetic Data created synthetic explosives, threats and items of interest, opioids,
synthetic bags, parcels, packages and concealment items. |
| Existing patents offer
significant protection with an
additional patent pending to
further increase defenses
Two (2) active patents and one
provisional Patent being refiled
$60 million invested into
prototyping, developing and
testing
Patent Portfolio and Trade Secrets Driving Adoption
ScanTech has a perpetual, exclusive license to its intellectual property portfolio through an affiliate, ScanTech/IBS IP Holding Company,
LLC. The Company believes its patent portfolio creates the most advanced security diagnostic imaging available.
1. Updated Provisional Being
Refiled
Patent Expiration Title
7,952,304 May 2, 2027 Radiation System
8,339,071 February 5, 2028 Particle Accelerator Having Wide-Energy Control Range
page 18 |
| Global Commercial Infrastructure Requires Security Enhancement
238 stadiums in the
US with at least
20,000 person
capacity4
Convention
Centers
344 convention
centers3
in the US
with at least 25,000
Sq. ft.
Train
Stations
526 train stations5
in the US served by
Amtrak
Cargo
827 million twenty-foot equivalent
units2
transported
globally at ports
Logistics
131 billion-unit1
global parcel
volume, projected
to double by 2026
Millions of square feet of commercial infrastructure, entertainment facilities, schools, sports stadiums and other highly trafficked
venues require physical security enhancements.
Sports
Stadiums
page 19
Energy
62,500 power
plants globally6
1.
2.
3.
Pitney Bowes
Statista
Cvent
Outdoor Media Buyers
US Bureau of Transportation Statistics
EIA
4.
5.
6. |
| ▪ The CPSS program anticipates the need for
over 2,400 CT systems, which the TSA intends
to allocate across multiple vendors. TSA has
already awarded contracts to purchase up to
about half of the 2,400 CT systems
▪ TSA has publicly announced their intention to
purchase units from all five firms selected
under CPSS1
TSA is Currently Replacing Scanning Infrastructure
1.
2.
TSA website-provided statistics.
DHS OIG report.
200
800
Bags per
hour
170
2
4x improvement
vs. requirement
300
The United States government has already allocated several billion dollars to a complete replacement of all scanning infrastructure
at airports around America.
ScanTech’s Sentinel equipment has a 4x throughput improvement over the TSA-mandated requirements.
page 20
Throughput Comparison
Legacy AT
Systems
CPSS
Requirement
Fielded CPSS
Systems
ScanTech |
| Airport Security Market Growth Catalyst’s
• Growing passenger numbers and terrorism concerns drive
increased security investments
• Adoption of AI, robotics, and biometrics enhances security
efficiency amid regulatory demands
• According to Mordor the Airport Security Market size is expected
to grow at a CAGR of 9.49% during the forecast period on the
right
Global Aviation Security Market
The aviation security market is poised for substantial growth, driven by increasing investments in advanced checkpoint screening
systems and other security technologies
page 21
$13.34
$20.99
2023 2024 2025 2026 2027 2028
Airport Security Market Size ($BN)
Source: Mordor Intelligence 2023. |
| PRO FORMA VALUATION No Redemptions 80% Redemptions
Total Shares Outstanding(2) 23.3 21.5
Illustrative Price per Share $10.00 $10.00
Equity Value $233 $215
Plus: ScanTech Debt(3) 20 20
Less: Cash (19) (4)
Total Enterprise Value 234 231
($ and share counts in millions, except per share data)
(1) Assumes 80% SPAC investors redeem shares for cash in trust in connection with the proposed business combination.
(2) Pro forma share count includes all SPAC rights but excludes any ScanTech earn-out shares.
(3) Assumes the completion of a pre-closing recapitalization of ScanTech, including conversion of approximately $70 million of existing indebtedness into equity of ScanTech and/or Pubco.
No Redemptions 80% Redemptions
ScanTech Rollover Equity $111 $111
Mars Cash in Trust 19 4
Mars Consolidated Equity 22 22
Total Sources $153 $138
SOURCES
ScanTech Rollover Equity $111 $111
Mars Consolidated Equity 22 22
Cash to Pro Forma Balance Sheet 15 0
Estimated Transaction Costs 4 4
Total Uses $153 $138
USES
SOURCES AND USES
KEY TRANSACTION TERMS
▪ Total pro forma enterprise value of approximately $215 million(1) with proceeds to fund
new growth opportunities.
▪ Existing ScanTech shareholders and management are rolling 100% of their equity.
▪ Management will receive 1 million new additional shares in the form of an earnout
based on specified targets.
▪ Mars Sponsors, ScanTech management and 5% ScanTech holders subject to lock-up
restrictions.
PRO FORMA ILLUSTRATIVE OWNERSHIP(2)
(80% Redemption Scenario)
Transaction Summary
page 22
Scantech
52%
Bridge Financing,
FPA, and Roth
13%
Non-Redemption
New Share Issuance
13%
MARX Sponsor
10%
Public Share
Holders
8%
Extension Non-Redemption
Share Issuance
2%
Maxim
(Underwriter)
1% |
| $ 16,283
$ 1,848 $ 1,434
$ 102
6.1x
4.2x
2.4x
1.6x
page 23
Benchmarking – Comparable Public Companies
2024 EV/Revenue
2024 Revenue
Source: CapIQ as of 9/3/2024.
($ in USD millions) |
| 16.2x
13.4x 12.0x
NM
$ 1,925
$ 474 $ 287
$(31)
page 24
Benchmarking – Comparable Public Companies
2024 EV/EBITDA
2024 EBITDA
Source: CapIQ as of 9/3/2024.
($ in USD millions) |
| page 25
APPENDIX |
v3.24.2.u1
Cover
|
Sep. 05, 2024 |
Document Information [Line Items] |
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8-K
|
Amendment Flag |
false
|
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Sep. 05, 2024
|
Entity File Number |
001-41619
|
Entity Registrant Name |
Mars Acquisition Corp.
|
Entity Central Index Key |
0001892922
|
Entity Tax Identification Number |
00-0000000
|
Entity Incorporation, State or Country Code |
E9
|
Entity Address, Address Line One |
Americas Tower
|
Entity Address, Address Line Two |
1177 Avenue of The
Americas
|
Entity Address, Address Line Three |
Suite 5100
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
Entity Address, Postal Zip Code |
10036
|
City Area Code |
888
|
Local Phone Number |
667-6277
|
Written Communications |
true
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
true
|
Elected Not To Use the Extended Transition Period |
false
|
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|
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|
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Units, each consisting of one ordinary share, par value $0.000125, and one right entitling the holder to receive 2/10 of an ordinary share
|
Trading Symbol |
MARXU
|
Security Exchange Name |
NASDAQ
|
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|
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|
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Ordinary Shares, $0.000125 par value
|
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MARX
|
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NASDAQ
|
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|
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|
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MARXR
|
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NASDAQ
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