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BBQGuys And Velocity Acquisition Corp (VELO) Enter Into Business Combination Agreement

Tuesday, July 20, 2021 11:03 AM | Michael Hayne
BBQGuys And Velocity Acquisition Corp (VELO) Enter Into Business Combination Agreement

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.

Short-Term Technical Rank - 10

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.

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