Playboy is in the news Thursday after announcing plans to return to the public through a special purpose acquisition company (SPAC).
A Playboy news release reveals that the company is working with SPAC Mountain Crest Acquisition Corp. (NASDAQ:MCAC) to go public. Once the deal is complete, the company will change its name to Playboy and its stock ticker will change to “PLBY”. Playboy CEO Ben Kohn will also lead the new company.
The total price of the deal between Playboy and Mountain Crest is $381 million. That price comes from two factors. The first is 23.9 million shares valued at $10 each that Playboy shareholders will receive. The second is $142 million of outstanding net debt that MCAC will assume.
The Playboy news release also notes that it will be buying 700,000 founder shares of MCAC stock from the SPAC. It will pay $6.35 per share for these and is taking this action to prevent dilution of the stock.
Another part of the deal includes $50 million worth of shares being sold to institutional and accredited investors. That will be used along with MCAC’s $58.5 million trust account to fund Playboy once the deal is complete.
Playboy notes that the deal has the unanimous support of it and Mountain Crest’s Boards of Directors. The deal still needs approval from shareholders of both companies, as well as regulators. So long as things go smoothly, the deal is expected to close in the first quarter of 2021.
MCAC stock was up 1.3% as of Thursday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.