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Some prefer their coffee to have an acidic vivacity in the aftertaste, balanced with the citrus aroma and full body perfected by rich volcanic soils.
Others are fond of a cup of freedom. For them, there’s Black Rifle Coffee – an extremely patriotic and somewhat expensive brand aimed at armed Muricans – which announced on Tuesday that it was going public by combining with a SPAC at a $1.7 billion valuation.
Patriotism seeps in
Black Rifle, based in Salt Lake City, whose marketg plays like US Team World Police — was founded by a former Green Beret and pledged to one day hire 10,000 veterans. It still has a long way to go to reach that goal – half of its 600 employees have moved from serving their country to serving espresso – but its plans to reorganize as a public benefit company make support for causes veterans a good bet.
Of course, nothing prevents Black Rifle from doing youtube videos advocating for open carry laws allowing enough firearms to manufacture Rambo look like a pacifist, which seems to be good for business:
- Black Rifle says its sales will increase 40% to around $230 million this year. It makes most of its revenue online, but owns a handful of brick-and-mortar stores and sells in Walmart and other big-box stores.
- Black Rifle will also raise $100 million in a private equity investment, or PIPE, tied to the deal, with hedge fund Engaged Capital injecting an additional $100 million.
Security enabled: Lately, investors in SPAC mergers – which started the year in the red and then fell into a volatile abyss – took off when shares fell below the current price, leaving deals in limbo. To avoid the problem, Black Rifle’s SPAC – SilverBox – raised additional capital in case investors bailed out before the deal closed. SPAC has $345 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.