Plant-based materials company Footprint is coming public through a merger with special purpose acquisition company (SPAC) Gores Holdings VIII (NASDAQ:GIIX). GIIX stock jumped on today’s news, sending shares up more than 1.5%. Investors should note this move comes on an otherwise down day for the market.
Source: Dmitry Demidovich/ShutterStock.com
So what do you need to know about the environmentally friendly company?
Founded in 2014, Footprint is perhaps best known for its goal of eliminating single-use plastics. As per the Footprint website:
“Today, we are inventing and manufacturing solutions that replace short-term use plastic. We’re helping retailers, CPG and food companies transition to plant-based solutions, reduce CO2 emissions, cut landfill waste and reach sustainability goals along the way.”
Footprint customers include the likes of General Mills (NYSE:GIS), Walmart (NYSE:WMT), Kraft Heinz (NASDAQ:KHC) and McDonald’s (NYSE:MCD). Broadly, the company works with brands to reduce the environmental impact of their packaged goods. Footprint was even named to Fortune’s Change the World List.
SPAC mergers continue to come out of the woodwork as an alternative to the traditional IPO. This means that Footprint is joining an ever-growing list of companies coming public through this path.
Beyond that, what stands out about the Footprint SPAC merger and GIIX stock?
8 Things to Know About Footprint’s Green New Deal With GIIX Stock
Pending Footprint’s merger, current stockholders, many of which are also customers, will roll their stakes into the newly public Footprint.
The deal, first rumored in August, will see Footprint become a $1.6 billion dollar company.
Footprint is expected to list on the Nasdaq under the FOOT ticker.
Koch Strategic Platforms is one of the early investors, who have contributed $310 million to the SPAC merger, at a price of $10 a share. Koch is separately contributing another $150 million in financing.
Footprint expects $135 million in revenue in 2022, and roughly $500 million in 2023. This year it’s closing in on roughly $50 million.
The deal is expected to close in the first half of next year, assuming stockholder approval.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
The post GIIX Stock Pops on Footprint SPAC Merger News. 8 Things to Know. appeared first on InvestorPlace.