Feeling hungry for some quick snacks? What about another SPAC opportunity? If so, you should pay close attention to Arko Holdings (NASDAQ:ARKO). Following the Arko Holdings SPAC merger, ARKO stock just started trading on the Nasdaq Exchange. Here is what investors should know now.
To start, investors should know that Arko Holdings is just starting its life on the Nasdaq. Up until its SPAC merger closed, the company was trading through Haymaker Acquisition Corporation II (NASDAQ:HYAC). Now though, ARKO stock is starting its own life. Investors should also note that Arko Holdings is relevant thanks to GPM Investments, one of its primary assets.
With that in mind, here is what investors need to know now:
- Blank-check company Haymaker Acquisition first came public in June 2019.
- At the time, it raised $350 million by offering 35 million units at $10 each.
- From the beginning, Haymaker said it wanted to focus on bringing a consumer products and services company public.
- That is exactly where the Arko Holdings SPAC merger comes in.
- Investors should note that Arko Holdings is a public holding company based in Israel.
- Prior to the merger, Arko traded under the ticker AKHO on the Tel Aviv Stock Exchange.
- What investors should know about Arko Holdings is that its primary asset is GPM Investments.
- GPM Investments is actually based in Richmond, Virginia.
- Importantly, GPM Investments is a growing participant in the convenience store business.
- It has been around since 2003, and is now the seventh-largest convenience store chain in the U.S.
- This is because it has 3,000 locations consisting of 1,350 company-operated stores and 1,600 dealer sites.
- GPM includes convenience store brands like BreadBox, Fas Fuel, E-Z Mart and Scotchman.
- In addition to these brands, GPM facilitates in-store partnerships with quick-service restaurants like Dairy Queen and Taco Bell.
The Bottom Line on ARKO Stock and the Arko SPAC Merger
Investors likely find the Arko Holdings SPAC merger less exciting than SPAC deals for EV makers or LiDAR companies. However, through its controlling stake in GPM Investments, ARKO stock offers up an interesting opportunity.
Importantly, ARKO stock is now tied very closely to regional convenience store chains in the United States. Now that it is trading on a U.S. exchange, company executives hope it can continue to grow even more. For investors, how to proceed largely centers on how the GPM brands react to the novel coronavirus. What do I mean?
Well, earlier on in the pandemic, convenience stores faced an identity crisis. As Bloomberg tells it, they could no longer rely on casual foot traffic. This reality has led many of the leading chains to the world of e-commerce and home delivery. Bringing everything from junk food to essential goods to your doorstep, convenience stores are changing their approach. Additionally, Bloomberg reported that these convenience stores can no longer rely as much on fuel sales. This means they must innovate, offering up appetizing snacks and other products.
If you are interested in ARKO stock, do your research. How are the regional brands of GPM Investments holding up? Are they set to be innovative winners in this new world of convenience stores? If so, the Arko Holdings SPAC merger could be worth a closer look.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.