Makram Azar, CEO of Golden Falcon Acquisition Corp, talks about his prospects for SPACs in 2021 and the European market.
Former NFL defender Colin Kaepernick plans to raise $ 250 million for a special-purpose acquisition company focused on issues of racial equality and social justice.
SPAC, called Mission Advancement Corp., will target companies with a business value in excess of $ 1 billion that have a scalable business model and an established customer base in the USA.
SPACs, commonly known as blank check companies, are formed for the purpose of raising money through an initial public offering to eventually acquire another company.
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Our mission is “to invest and develop a business in a way that has a significant financial, cultural and social impact,” said Mission Advancement Corp. in a document from the U.S. Securities and Exchange Commission.
Investment firm Najafi Companies will work with Kaepernick, who is co-sponsoring and co-chairing the board, to leverage his marketing and experience with brands like Nike Inc. and Walt Disney Co. Kaepernick when he was with San Francisco 49ers in 2016, knelt down during the national anthem of an NFL game to raise awareness of social injustice and police brutality.
Kaepernick, who plans to remain a “highly engaged owner” after the acquisition, will forgo initial contract payments in an effort to provide long-term value and competitive advantages for the target company.
The independent board of Mission Advancement Corp. it is entirely formed by blacks, indigenous people and people of color and represented by a female majority.
Cantor Fitzgerald & Co. and Moelis & Co. are joint managers and Loop Capital Markets is the lead manager.
Kaepernick is not the only high-level athlete to use a SPAC to go public.
Former MLB All-Star Alex Rodriguez earlier this month announced his intention to raise $ 500 million for Slam Corp. This followed an October announcement from the NBA Hall of Fame Shaquille O’Neal, who serves as a consultant to the Forest Road Acquisition.
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Last year SPACs became the preferred way for companies to go public in the U.S.
The 229 SPACs that debuted in 2020 raised $ 76 billion, or 59% of all U.S. IPO funds, according to Goldman Sachs. That was above the 52 SPACs that raised $ 13 billion in revenue in 2019.