United States based e-commerce retailer that offers direct delivery of bulked-sized grocery packages Boxed Inc. will be going public through a merger deal with blank-check company Seven Oaks Acquisition Corp. (SVOK) in a deal which will give the merged company a market valuation of about $900 million.
This merger deal is expected to leave Boxed with net cash proceeds of more than $334 million inclusive of a $120 million private placement from private investors such as Avanda Investment Management, Onex Credit and Brigade Capital Management.
According to the official website of Boxed, the company sells household products in bulk ranging from groceries, health supplies among other goods to households and businesses.
This deal will be mixture of stock and structured notes to raise equity, this indicates how Special Purpose Acquisition Companies are coming up with creative ideas of sourcing funds from investors.
Experts and regulators are increasingly becoming worried that SPACs are giving pubic companies market valuations which are too high posing a great loss risk to investors in a situation where a market correction is done to remedy the situation.
This deal is expected to be close before the fourth quarter of the year is over.