The Kevin Durant takeover just won’t stop!
As AfroTech previously reported, the Brooklyn Nets basketball star became one of the major buyers in a $1.35 billion merger agreement last month between SeatGeek and RedBall Acquisition Corporation, a blank check company.
On Nov. 3, Reuters revealed that Kevin Durant has launched a $200 million special purpose acquisition company (SPAC), making him the latest celebrity to endorse a blank-check firm.
According to Reuters, Durant’s Infinite Acquisition Corp’s initial public offering comes in “amid a chill in the SPAC market, due to tightening accounting guidance and regulatory scrutiny from the U.S. Securities And Exchange Commission.”
The SPAC will trade under Ticker symbol “NFNT.U” on the New York Stock Exchange and be co-led by Durant and his longtime manager and business partner Rich Kleiman. LionTree, an investment and merchant banking firm, has also joined the dynamic duo as a sponsor of the SPAC.
Infinite Acquisition Corp is set to buy companies in sectors including sports, health, e-commerce, food and cryptocurrency, as well as it it will redeem 100 percent of the shares for cash if it does not close a merger within 18 months after the offering closes, according to Reuters.
The company will sell 20 million shares at $10 and return money to investors if it doesn’t acquire a company to take public within 24 months.
CNBC reports that funds are placed in a two-year escrow account, and once a deal is identified, it’s presented to investors. Investors can exit if they don’t approve a proposal. Also, investors can secure stock warrants — options to buy shares of the new company purchased at a future date — if a deal is secured.
Earlier this year, Jay-Z closed the largest cannabis deal in SPAC history. As previously reported by AfroTech, Subversive Capital Acquisition Corp launched The Parent Company — the largest vertically integrated cannabis operation in California — with Jay-Z, Caliva, Roc Nation, and Left Coast Ventures.