BarkBox is planning a merger with special purpose acquisition company (SPAC) Northern Star Acquisition (NYSE:STIC) that will have it going public.
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Here’s what interested investors need to know about BarkBox ahead of its SPAC merger.
- BarkBox is a subscription service that sends monthly boxes of dog treats and toys to customers.
- It currently has more than 1 million subscribers via its BarkBox and Super Chewer subscriptions.
- This has it serving as a leader in the primary channels of Fun, Food, Home, and Health for dogs.
- The company’s current fiscal year will come to a close on March 31, 2021.
- When it does, BarkBox is expecting to report a yearly revenue of $365 million with gross margins of 60%.
- That would have its revenue increase by 179% from the previous year.
- Gross profit for the year is also expected to come in at $221 million.
- The BarkBox SPAC merger values the company at $1.6 billion.
- It will also provide it with $454 million of gross proceeds to make use of once the merger is complete.
- $200 million of this comes from a private investment in public equity (PIPE).
- The company plans to use the funds to expand its current and upcoming product lines, pay down debt, and continue other business operations.
- BarkBox and Northern Star Acquisition are expecting the deal to close early in the second quarter of 2021.
- When it does, the newly-combined company will take on the BarkBox name.
- At the same time, shares of STIC stock will change over to the new BARK stock ticker.
STIC stock was up 21.9% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
