Silver Spike Acquisition Corp II Announces Pricing of $250 Million Initial Public Offering

Rhea-AI Summary

Silver Spike Acquisition Corp II has priced its IPO at $10.00 per unit, raising a total of $250 million through the sale of 25 million units. The units will trade on Nasdaq under the symbol 'SPKBU' starting March 11, 2021. Each unit contains one Class A ordinary share and one-fourth of a redeemable warrant, with the whole warrant priced at $11.50 per share. The company aims to merge with businesses in the cannabis sector that comply with legal standards. Credit Suisse and Stifel are managing the offering, which includes a 45-day option for underwriters to purchase additional units.

Positive

• Company aims to merge with compliant cannabis businesses, indicating a clear strategic focus.
• Experienced management team with a strong background in the cannabis sector.
• Successful IPO pricing at $10.00, indicating confidence in market demand.

Negative

• Heavy reliance on the success of the proposed mergers; any failure may impact future growth.
• Risks associated with regulatory changes in the cannabis industry.

Silver Spike Acquisition Corp II (the “Company”) announced today that it priced its initial public offering of 25,000,000 units at $10.00 per unit. The units are expected to be listed on The Nasdaq Capital Market (“Nasdaq”) and trade under the ticker symbol “SPKBU” beginning on March 11, 2021. Each unit consists of one Class A ordinary share and one-fourth of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share. Only whole warrants are exercisable. Once the securities comprising the units begin separate trading, the Class A ordinary shares and redeemable warrants are expected to be listed on Nasdaq under the symbols “SPKB” and “SPKBW,” respectively.

The Company was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company intends to focus on businesses in the cannabis industry that are compliant with all applicable laws and regulations within the jurisdictions in which they are located or operate. The management team and board of directors are composed of veteran cannabis and finance industry executives and founders, including Scott Gordon, founder and CEO of the Company, who began investing in the cannabis industry in 2014 and in 2016 co-founded Egg Rock Holdings, parent company of the Papa & Barkley family of cannabis products with related subsidiary assets in manufacturing, processing and logistics and served as its Chairman until 2019; and Dr. Orrin Devinsky, director of the Company, who is the director of the NYU Langone Comprehensive Epilepsy Center and is a Professor of Neurology, Neuroscience, Psychiatry and Neuroscience at the NYU School of Medicine and who, since 2016 has served as the Chair of the Medical Advisory Board at Tilray, a pharmaceutical and cannabis company.

Credit Suisse and Stifel are acting as joint book-running managers of the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,750,000 units at the initial public offering price to cover over-allotments, if any.

The offering is being made only by means of a prospectus. When available, copies of the prospectus may be obtained from Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, Telephone: 1-800-221-1037, Email: usa.prospectus@credit-suisse.com or Stifel, Nicolaus & Company, Incorporated, Attn: Syndicate Department, One South Street, 15th Floor, Baltimore, Maryland 21202, 1-855-300-7136, Email: syndprospectus@stifel.com.

A registration statement relating to the securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on March 11, 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 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 contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, 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 preliminary prospectus for the Company’s offering filed with the SEC. Copies of these documents are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210310006058/en/

FAQ

What is the purpose of Silver Spike Acquisition Corp II's IPO?

The IPO aims to raise capital for merging with cannabis businesses that comply with legal regulations.

When will SPKB and SPKBW shares begin trading?

Shares under the symbols SPKB and SPKBW are expected to start trading on Nasdaq following the initial public offering on March 11, 2021.

What are the details of the units being offered in the IPO?

Each unit consists of one Class A ordinary share and one-fourth of a redeemable warrant, priced at $10.00 per unit.

Who are the underwriters for the IPO?

Credit Suisse and Stifel are acting as joint book-running managers for the IPO.

What are the potential risks of investing in Silver Spike Acquisition Corp II?

Investors should consider the risks related to the reliance on successful mergers and the evolving regulatory landscape in the cannabis industry.