Post Number: 2965
Posted From: 18.104.22.168
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|Posted on Thursday, December 24, 2020 - 11:41 am: ||
BarkBox is planning a merger with special purpose acquisition company (SPAC) Northern Star Acquisition (NYSE:STIC) that will have it going public.
The BarkBox logo on smartphone sitting on a blue table next to a laptop.
Source: IgorGolovniov / Shutterstock.om
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.