Hong Kong-listed digital media and commerce company Hypebeast Limited plans to list on Nasdaq following its merger with listed special purpose acquisition company (SPAC) Iron Spark I Inc.
The merger with Iron Spark should provide up to $180 million in total gross product. The agreement, which fixes Hypebeast at a pro forma equity valuation of $534 million, also includes a $13.3 million private equity investment (PIPE) transaction.
The PIPE deal has been supported by icons such as quarterback and investor Tom Brady; tennis star Naomi Osaka; Thirty five co-founders of Ventures Kevin Durant and Rich Kleiman; professional skateboarder and founder of Birdhouse Skateboards Tony Hawk, among others.
Hypebeast intends to use the profits to invest in technology, talent, brand experiences and marketing.
The transaction is expected to close in the third quarter of 2022.
Founded in 2005, the culture and lifestyle-focused Hypebeast has over 26 million followers worldwide.
The company has relationships with more than 250 global e-commerce and media brands, seizing significant growth opportunities in the $1.6 trillion total global addressable apparel and footwear market.
“We have built a loyal and passionate community that trusts our curation across various lifestyle categories spanning fashion, arts, design, luxury, sports, tech, and more. Our partnership with Iron Spark and our Entering the public markets in the United States will propel us to the next level. With access to new capital and talent, we will expand our universe of content, commerce and experiences in ways that strengthen our business and our community. “said the CEO of Hypebeast. Kevin Ma in a statement.
Morgan Stanley and BTIG are acting as financial advisors to Iron Spark while Cowen and Company is acting as exclusive financial advisor to Hypebeast. Kirkland & Ellis is legal counsel to Hypebeast, and Loeb & Loeb is legal counsel to Iron Spark.