Brooklyn Nets star Kevin Durant launches $200 million SPAC



Brooklyn Nets star Kevin Durant has become the latest celebrity to endorse a blank-check firm after his Infinite Acquisition Corp filed for an initial public offering of up to $200 million on Wednesday.

The filing comes amid a chill in the special purpose acquisition company (SPAC) market, due to tightening accounting guidance and regulatory scrutiny from the Securities And Exchange Commission.

Besides Durant, SPACs have attracted the attention of other celebrities, including rapper Jay-Z, tennis star Serena Williams and NBA Hall of Famer Shaquille O’Neal.

SPACs are shell firms that use the pool of capital raised through an initial public offering to merge with a private company and take it public.

Infinite Acquisition said it would focus on buying companies in sectors such as sports, health, e-commerce, food and cryptocurrency.

Kevin Durant handling a basketball on the floor of the Brooklyn Nets basketball court
Brooklyn Net Kevin Durant is among a number of celebrities to lend his star power to investment in a SPAC.
Getty Images

Durant will co-lead the SPAC alongside his manager, entrepreneur Rich Kleiman. The duo earlier co-founded venture firm Thirty Five Ventures. Investment and merchant bank LionTree is also a sponsor of the SPAC.

Last month, Durant and Kleiman also backed online ticketing firm SeatGeek’s $1.35 billion merger with a blank-check firm.

Infinite Acquisition said it would redeem 100% of the shares for cash if it does not close a merger within 18 months after the offering closes. Typically, such acquisition vehicles have up to 24 months to hunt for a company to take public.

Rich Kleiman and Kevin Durant holding microphones and speaking while seated onstage
Kevin Durant and his manager, Rich Kleiman (both seen speaking at a 2019 business summit) will co-lead the Infinite Acquisition SPAC.
Getty Images

Infinite Acquisition is offering 20 million units at $10 each. Credit Suisse is the sole underwriter for the offering.

The units will be listed on the New York Stock Exchange under the symbol “NFNT.U,” the company said.


Source link