BARK and Northern Star Acquisition Corp. Announce Closing of Merger

Rhea-AI Summary

Barkbox, Inc. has completed its merger with Northern Star Acquisition Corp. (NYSE: STIC), resulting in the formation of The Original BARK Company, effective June 1, 2021. The merger was approved by Northern Star's stockholders on May 28, 2021, with trading under the new ticker 'BARK' commencing on June 2, 2021. BARK raised approximately $427 million in cash proceeds, which will be used for product line expansions and growth initiatives. The company aims to strengthen its market position in the global pet care industry, leveraging its subscription services and product offerings.

Positive

• Merger raised approximately $427 million in cash.
• Funds will support expansion of product lines including food, health, and toys.
• Expected growth in market share and customer base through enhanced services.

Negative

• Risks associated with projected financial performance.
• Potential uncertainty in consumer spending on pet products.
• Integration challenges post-merger may impact operational effectiveness.

NEW YORK, June 1, 2021 /PRNewswire/ -- Barkbox, Inc. ("BARK" or the "Company"), the leading global brand for dogs, today announced that it has completed its previously announced merger with Northern Star Acquisition Corp. ("Northern Star") (NYSE: STIC), a publicly traded special purpose acquisition company. The transaction, which was approved by Northern Star's stockholders at its Annual Meeting of Stockholders held on May 28, 2021, resulted in the combined company being renamed "The Original BARK Company", with its common stock and warrants to commence trading on the New York Stock Exchange at the opening of trading on June 2, 2021 under the new ticker symbols "BARK" and "BARK WS", respectively.

In connection with the merger and related private placement, BARK received approximately $427 million in cash proceeds. The funds are expected to be used to expand BARK's food, home and health product lines, fuel the continued growth of its toy and treat subscription services, enhance cross-selling opportunities and reach new customers domestically and abroad.

Manish Joneja, Chief Executive Officer of BARK, said, "It is a special day for BARK and our passionate employees as we enter the public markets and continue to deliver on our mission of making all dogs happy through the best products, services and content. The closing of our merger with Northern Star provides us with the platform to bring our renowned BarkBox and Super Chewer toy and treat subscription lines to even more customers, while scaling our newer, high-potential BARK Eats, BARK Bright, and BARK Home initiatives. By building deep, personalized relationships with dogs and their parents, we believe BARK will continue to gain meaningful market share and grow to be synonymous with all things dogs worldwide."

Mr. Joneja will serve as CEO and lead the combined company alongside BARK Founders Matt Meeker, Henrik Werdelin and Carly Strife. Mr. Meeker will serve as Executive Chairman, and Northern Star Chairperson and Chief Executive Officer Joanna Coles, a creative media and technology executive, and President and Chief Operating Officer Jonathan Ledecky, a seasoned executive with over 35 years of investment and operational experience, will serve on the combined company's Board of Directors.

Ms. Coles said, "The global pet care industry presents a massive, rapidly expanding market opportunity, but remains in the early stages of innovation and disruption. BARK, through its unmatched customer engagement, vertically integrated and data-driven product development, and omni-channel sales approach including subscription services and retail partnerships, is uniquely positioned to capitalize on this opportunity. We are tremendously proud of the Company's talented, execution-oriented team and are confident in BARK's ability to create long-term shareholder value while making the world a happier, healthier place for dogs."

To celebrate the completion of the merger, members of BARK's leadership team will ring the opening bell at the New York Stock Exchange at 9:30 a.m. ET on Wednesday, June 2, 2021. A live stream of the event and replay can be accessed by visiting https://www.nyse.com/bell.

Advisors

Citigroup acted as sole financial and capital markets advisor to Northern Star. Citigroup acted as sole placement agent to Northern Star in connection with the PIPE Offering.

Canaccord Genuity acted as financial advisor to BARK.

Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to BARK. Graubard Miller acted as legal counsel to Northern Star.

About BARK

BARK is the world's most dog-centric company, devoted to making dogs happy with the best products, services and content. BARK's dog-obsessed team applies its unique, data-driven understanding of what makes each dog special to design playstyle-specific toys, wildly satisfying treats and wellness supplements, and dog-first experiences that foster the health and happiness of dogs everywhere. Founded in 2012, BARK loyally serves dogs nationwide with monthly subscription services, BarkBox and Super Chewer; a curated e-commerce experience on BarkShop.com; custom collections via its retail partner network, including Target and Amazon; wellness products that meet your dogs' needs with BARK Bright; and a personalized meal delivery service for dogs BARK Eats. At BARK, we want to be the people our dogs think we are and promise to be their voice until every dog reaches its full tail-wagging potential. Sniff around at bark.co for more information.

Forward Looking Statements 

This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the benefits of the transaction, the services offered by BARK and the markets in which it operates, and BARK projected future results. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, changes in domestic and foreign business, market, financial, political and legal conditions. These forward-looking statements are subject to a number of risks and uncertainties including but not limited to: failure to realize the anticipated benefits of the merger; risks relating to the uncertainty of the projected financial information with respect to BARK; the risk that spending on pets may not increase at projected rates; that BARK subscriptions may not increase their spending with BARK; BARK's ability to continue to convert social media followers and contacts into customers; BARK's ability to successfully expand its product lines and channel distribution; competition; the uncertain effects of the COVID-19 pandemic; and those factors discussed in documents of Northern Star filed, or to be filed by BARK, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and BARK assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. BARK gives no assurance that it will achieve its expectations.

Contacts

For BARK

Investors:
ICR, Inc.
Jean Fontana
Jean.Fontana@icrinc.com  

Media:
Garland Harwood
press@barkbox.com

For Northern Star Acquisition Corp.

Jonathan Gasthalter/Nathaniel Garnick/Sam Fisher
Gasthalter & Co.
(212) 257-4170
northernstar@gasthalter.com    

 

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SOURCE BARK and Northern Star Acquisition Corp.

FAQ

What is the significance of the merger between BARK and Northern Star Acquisition Corp (STIC)?

The merger allows BARK to access approximately $427 million in cash proceeds, which will facilitate the expansion of its product offerings and services in the pet care market.

When did BARK's common stock begin trading on the NYSE?

BARK's common stock commenced trading on June 2, 2021, under the ticker symbol 'BARK'.

What are BARK's plans following the merger with Northern Star (STIC)?

BARK plans to use the funds from the merger to expand its food, home, and health product lines, as well as to enhance its subscription services and cross-selling opportunities.

What challenges could BARK face after merging with Northern Star (STIC)?

Post-merger challenges may include navigating projected financial uncertainties and potential integration issues that could affect operational performance.