Golden Falcon Acquisition Corp CEO Makram Azar on his outlook for SPACs in 2021 and the European market.
Former NFL quarterback Colin Kaepernick plans to raise $ 250 million for a special acquisition company focused on racial equality and social justice issues.
Called Mission Advancement Corp., the SPAC will target companies with an enterprise value of more than $ 1 billion that have a scalable business model and an established customer base in the US.
Commonly known as blank check companies, SPACs are established with the aim of raising money through an IPO to eventually acquire another company.
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Our mission is to “invest in and grow a business in a manner that has significant financial, cultural and social impact,” said Mission Advancement Corp. in an application from the U.S. Securities and Exchange Commission.
The investment firm Najafi Companies will partner with Kaepernick, who acts as co-sponsor and co-chairman, for its marketability and experience with brands such as Nike Inc. and Walt Disney Co. Kaepernick when he was with the San Francisco 49ers in 2016 knelt during the national anthem of an NFL game to raise awareness for social injustice and police brutality.
Kaepernick, who plans to remain as a “highly engaged owner” after the acquisition, will forgo contractual upfront payments in an effort to provide long-term value and competitive advantages to the target company.
The independent board of Mission Advancement Corp. is composed entirely of black, indigenous and colored people and is represented by a female majority.
Cantor Fitzgerald & Co. and Moelis & Co. are joint book-running managers and Loop Capital Markets is the lead manager.
Kaepernick isn’t the only high profile athlete using a SPAC to publicize a company.
Former MLB All-Star Alex Rodriguez announced his intention to raise $ 500 million for Slam Corp. earlier this month. That followed an October announcement from NBA Hall of Famer Shaquille O’Neal, who serves as an advisor to Forest Road Acquisition.
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SPACs became the preferred choice for companies to go public in the US last year.
The 229 SPACs that debuted in 2020 have raised $ 76 billion, or 59% of all US IPO funds, according to Goldman Sachs. That was higher than the 52 SPACs that raised $ 13 billion in revenues in 2019.