Michael Loccisano photo / Getty Images
- Former baseball star Alex Rodriguez is joining the SPAC craze and launching his own.
- Rodriguez is expected to head Slam Corp., which seeks to raise $ 575 million in its public debut.
- Slam will seek to acquire a company in sectors such as sports, media and welfare, a filing said.
- Sign up here to receive our daily newsletter, 10 things before the opening bell.
Former baseball star Alex Rodriguez is the last high-profile name to throw his hat into the SPAC ring when launching a “blank check” company called Slam Corp.
SPACs – special purpose acquisition companies – are investment vehicles that raise funds from investors that are used to acquire a private company and open it.
The document said that Rodriguez would lead Slam as its CEO and that he would seek an acquisition in the “sports, media, entertainment, health and wellness and consumer technology sectors”.
“We will seek to acquire a multi-billion dollar asset with a leading market position in an attractive sector,” said the document.
Unlike Redball Acquisition Corp. Billy Beane, Slam is not looking to acquire a professional sports team, the document states. Redball recently failed in an attempt to go public with the Boston Red Sox parent company.
According to the lawsuit, Slam is trying to raise up to $ 575 million by selling shares and guarantees at $ 10 per share.
SPACs have been in vogue since last year, when the COVID-19 pandemic brought down the traditional IPO roadshow. According to SPAC Insider data, 248 blank check companies raised $ 83 billion in 2020, while 118 SPACs have raised $ 35 billion so far in 2021.
Even former Trump administration officials are launching one: Wilbur Ross, the former trade secretary, is heading a new SPAC with Larry Kudlow as director.
Slam will be traded on Nasdaq under the symbol SLAM as soon as the deal is completed, the document said.
Read More: Investors are moving to trade Dogecoin and other major digital tokens on Voyager, an unrestricted Robinhood-style platform. Its CEO says Bitcoin will reach $ 100,000 this year – and shares 3 other cryptocurrencies to watch.