What's Happening With Velocity Acquisition Corp?
Velocity Acquisition Group (VELO), a special purpose acquisition group that exists to effect a merger, today announced that it has entered into a definitive business combination agreement with BBQ Guys, a leading specialty e-commerce and content platform for grills, grilling accessories and outdoor living products and enthusiasts. Shares of the company were trading 1.60% higher to $9.81 a share on Tuesday.
What Does This Mean For Velocity Acquisition Group?
BBQGuys, having an emerging owned-brands portfolio focused on filling gaps in the market using a data-driven approach and an expanding wholesale/retail distribution network, will now be listed on the on the NASDAQ under the new ticker symbol “BBQG”. The purchase values BBQGuys at a pro forma equity value of $963 million and an enterprise value of $839 million.
The existing cash in Velocity Acquisition’s trust account will be used to invest in BBQGuys’ growth initiatives and provide additional working capital, resulting in a pro forma balance sheet net cash position of $125 million. The current shareholders and management are putting 100% of their equity into the Company and will continue to own at least 71% of shares on a pro forma basis.
Velocity Acquisition Corp. intends to effect a merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in digital transformation businesses.
VELO has a Short-Term Technical Rank of 10. Find out what this means to you and get the rest of the rankings on VELO!
Velocity Acquisition Corp is a blank check company.
