SilverBox Engaged Merger Corp I (SBEA) is a common stock that is listed on the exchange. It is one of the stocks that is going to have an impact on investors. The company is a political lighting rod, and the decision that is going to be made from the shareholders of this company is going to have an important impact on the future of the company.
SilverBox Engaged Merger Corp I (SBEA) is a common stock listed on the exchange
SilverBox Engaged Merger Corp I (SBEA) is a special purpose acquisition company with a long term vision. It was formed to pursue that vision and has a large network of relationships to help it reach its goal. A portion of the common stock is listed on the exchange and its securities began trading on the exchange under new ticker symbols on February 10, 2022.
The Company’s audited balance sheet as of March 2, 2021, is included as Exhibit 99.1 to its Current Report on Form 8-K. That balance sheet reflects receipt of proceeds upon consummation of an IPO. In addition, its financial statements are included in the SilverBox SEC Reports.
As part of its business model, the Company has engaged with an investment advisor, Engaged Capital. With this, the company hopes to invest in sustainable businesses that will provide superior returns to investors. This is done by utilizing a private equity like investing style. While the investment advisor provides the investment expertise, the company brings the owner’s perspective to undervalued public companies. Founded in Newport Beach, California, it focuses on achieving long-term growth and return through the ownership of its investments.
In addition to its investments, the company is also responsible for the management of $1.5 billion in institutional capital. Its mission is to help undervalued public companies unlock their embedded value and turn it into a profitable asset.
As of its closing, the Company will have approximately $150 million in cash. Its audited balance sheet as of the closing date reflects the receipt of that amount. However, the company has not filed an election to be treated as an association taxable as a corporation.
Before the closing of the transaction, the Company must obtain SilverBox Shareholder Approval. This approval is required by law. After obtaining SilverBox Shareholder Approval, the Company must then hold a SilverBox Shareholders Meeting. During the meeting, a majority of SilverBox Shareholders must vote in favor of the merger. If the merger does not pass the vote, the transaction cannot be completed.
On or around the closing date, the Company and SilverBox will merge. In the event that the parties are unable to agree on a closing date, the closing shall occur on the third Business Day following satisfaction of the conditions.
SilverBox Engaged Merger Corp I (SBEA) could drive $500 million in EBITDA
SilverBox Engaged Merger Corp I (SBEA) is a blank check company incorporated in Delaware that is formed for the purpose of effecting business combinations. It is sponsored by Engaged Capital LLC and is supported by numerous institutions on the share registry. The IPO is scheduled for March 2021. In addition to this, the company is backed by a great team with expertise across retail, social media, and restaurants.
As part of its mission to unlock the embedded value within public companies, Engaged Capital has created an alternative asset management platform, and a portfolio of SPACs. Together, SilverBox and Engaged Capital are working to grow sustainable businesses that will generate superior long-term returns.
The team has a track record of supporting new-to-market public companies that are growing profitably. This includes the recent merger with Black Rifle Coffee Company, which was founded as a veteran-focused business and has been growing rapidly in the premium coffee industry.
SilverBox has a wide network of relationships and experience in effecting successful business combinations. As a result, the company is well positioned to drive growth in this industry.
BRCC, the company that SilverBox will become part of, has a highly scalable, multi-channel business that is gaining market share. In addition, BRCC is growing quickly and has a strong gross margin. With a growing direct-to-consumer subscription base and multi-channel expansion, the company expects to achieve approximately 40% revenue growth in 2021.
BRCC is a veteran-owned business that was founded in response to the needs of the military. Its focus is to serve active-duty military, veterans, and first responders. Its ready-to-drink products are sold at major national outlets and its branded coffee shops. Founded by US Marine Tom Davin, BRCC has a great story.
While the Business Combination is a great opportunity for SilverBox, there are some risks associated with it. These include the potential for additional costs that are not reflected in the current estimates, as well as the potential that the benefits of the combination will not be realized.
Additionally, SilverBox’s directors and officers have other interests that may not be consistent with those of the Company. Furthermore, the proposed Business Combination will result in changes to the Board of Directors. Therefore, the strategy of the combined company may be influenced by the changes.
SilverBox Engaged Merger Corp I (SBEA) is a political lighting rod
SBEA is a special purpose acquisition company sponsored by SilverBox Capital LLC. It is taking Black Rifle Coffee Company public. The company is a veteran-owned premium coffee company that connects consumers with great coffee and an experience that is unmatched by any other brand. They sell ready-to-drink products at major national outlets and direct-to-consumer subscriptions.
This transaction will boost Black Rifle’s value to $1.7 billion at $10 per share. The acquisition will be funded by $345 million from the IPO and $100 million from Engaged Capital. This should set up the company to become a unicorn.
This company has a compelling growth story, especially in the current political climate. The company was founded by a former military veteran and has been growing at a rapid rate. The company also has a mission to help veterans. In addition to that, it is a veteran-owned company that supports first responders and offers ready-to-drink premium coffee.
While SBEA has some downside risk, there is very little. The company is able to move because of its historical earnings and a stable redemption rights. As for growth, it is looking at whitespace for at least 1,300 locations and expects to drive $500 million in EBITDA.
With a solid history of performance, a strong management team, and minimal downside risk until close, SBEA is worth a look. It is a candidate for aggressive investors. However, the stock could get crowded in this market. If you want to buy, be sure to consider warrants. Otherwise, you may have a hard time getting out of the trade quickly.