Group Nine Acquisition Corp. Announces Closing of $230M Initial Public Offering, Including Full Exercise of the Underwriters’ Over-Allotment Option

Rhea-AI Summary

Group Nine Acquisition Corp. (GNAC) recently closed its initial public offering (IPO) of 23,000,000 units, raising $230,000,000. The units, priced at $10.00 each, include one share of Class A common stock and one-third of a redeemable warrant. Trading commenced on Nasdaq under the symbol 'GNACU' on January 15, 2021. The offering was led by Barclays and Code Advisors. This IPO positions GNAC to engage in mergers or acquisitions, enhancing its potential market presence.

Positive

• Raised $230,000,000 through IPO, providing significant capital for future acquisitions.
• Units include both common stock and redeemable warrants, potentially attracting diverse investors.

Negative

• As a blank check company, GNAC carries inherent risks related to future merger or acquisition performance.
• Investors face uncertainty due to reliance on management's ability to identify and complete successful transactions.

Group Nine Acquisition Corp. (“GNAC” or the “Company”), announced today the closing of its initial public offering of 23,000,000 units which included the full exercise of the underwriters' over-allotment option, at a price of $10.00 per unit, resulting in aggregate gross proceeds of $230,000,000.

GNAC is a newly organized, blank check company formed by Group Nine Media, Inc. for the purpose of carrying out a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.

The units began trading on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol "GNACU" on January 15, 2021. Each unit consists of one share of GNAC’s Class A common stock and one-third of one redeemable warrant, each whole warrant entitling the holder thereof to purchase one share of Class A common stock at an exercise price of $11.50 per share. Once the securities comprising the units begin separate trading, the Class A common stock and warrants are expected to be listed on the Nasdaq under the symbols “GNAC” and “GNACW,” respectively. No fractional warrants will be issued upon separation of the units and only whole warrants will trade.

The company is led by Chief Executive Officer and Director Ben Lerer, who concurrently serves as the CEO of Group Nine Media. Brian Sugar, President of Group Nine Media, is President and a director of GNAC. The board of directors include Richard D. Parsons, Co-Founder and Partner of Imagination Capital and a director of Lazard Ltd and Lazard Group as well as the former CEO of Time-Warner and former Chairman of CitiGroup; and Jen Wong, Chief Operating Officer at Reddit and the former President of Digital and COO of Time Inc. Sean Macnew, CFO of Group Nine Media, will be Chief Financial Officer of the Company.

Barclays and Code Advisors served as underwriters for the offering.

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained from Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, email: barclaysprospectus@broadridge.com, tel: (888) 603-5847.

A registration statement related to these securities has been filed with the Securities and Exchange Commission (SEC) and became effective on January 14, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release includes forward-looking statements. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the "Risk Factors" section of the Company's registration statement and prospectus for the offering filed with the SEC, any of which could cause actual results to differ from such forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210120005749/en/

FAQ

What is the purpose of Group Nine Acquisition Corp.'s IPO under GNACU?

The IPO aims to raise capital for potential mergers or acquisitions.

How much capital did Group Nine Acquisition Corp. raise in its IPO?

Group Nine Acquisition Corp. raised $230,000,000 through its IPO.

When did GNACU begin trading on the Nasdaq?

GNACU began trading on the Nasdaq on January 15, 2021.

What does each unit of GNACU consist of?

Each unit consists of one share of Class A common stock and one-third of a redeemable warrant.

Who were the underwriters for the Group Nine Acquisition Corp. IPO?

The underwriters for the IPO were Barclays and Code Advisors.