Rumors have been circulating that Impossible Foods may merge with Forum Merger II (stock symbol: FMCI), a special purpose acquisition company (SPAC), otherwise known has a blank check company.
On May 13, Forum, which closed today at $14.25, and is sitting on approximately $210 million in cash, issued the following press release on May 3, 2020:
Delray Beach, FL, May 13, 2020 (GLOBE NEWSWIRE) -- Forum Merger II Corporation (Nasdaq: FMCI) (“Forum” or the “Company”) today announced it has signed a letter of intent and expects to sign a definitive agreement to acquire a high-growth, plant-based food company with a broad portfolio of innovative products that are aligned with major food trends and sold through leading retailers and distributors across the United States (the “Target”).
The Target’s disruptive strategy is focused on addressing the growing consumer demand for nutritious, great tasting, better-for-you products with plant-based food. The Target’s alignment with today’s secular food trends, combined with its robust, plant-based offerings that feature unique ingredients, innovative recipes and creative branding, has allowed it to establish a meaningful market presence in a short period of time. Forum believes that the Target has a compelling financial profile, with significant historical and projected revenue growth and profitability. Forum’s management expects that the anticipated valuation at consummation of the business combination transaction will represent a meaningful discount to relevant public comparable multiples.
Completion of the transaction is subject to, among other things, the negotiation and execution of a definitive agreement providing for the transaction, satisfaction of the closing conditions included therein and approval of the transaction by Forum’s shareholders. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.
globenewswire.com
Forum had to complete an acquisition by June 10, 2020; otherwise it would have to liquidate. Today, its shareholders extended the deadline to September 30, 2020.
sec.gov
FMCI was up $1.84 on the news.
Impossible Foods recently raised another $300 million. Even though FMCI would only add $210 million to the pot, a deal with FMCI could bring in additional funding as part of the transaction, which is what DraftKings did earlier this year when it merged with Diamond Eagle, another SPAC.
Going public through a reverse merger with FMCI would be a relatively inexpensive way for Impossible Foods to get a public listing. It would also get less regulatory scrutiny than a traditional IPO. |
