N*GEN Partners Launches SPAC
Last week members of investment firm N*GEN Partners filed with the SEC to raise up to $125 million for an IPO for Better World Acquisition Corp (BWAC), a newly launched special purpose acquisition company (SPAC). BWAC will look to acquire a company that “benefit[s] from strong Environmental, Social and Governance (ESG) profiles” within the “healthy living” sector.
The SPAC was filed confidentially on August 31, 2020 and is now listed on the Nasdaq exchange under symbol BWACU. The New York City based company planned to sell 12.5 million units at $10 a share, exercisable at $11.50. N*GEN managing member Rosemary Ripley will serve as CEO and Chairman, while N*GEN founder Peter Grubstein will act as CFO and director.
The blank check company now has 24 months to identify a target business and complete the transaction. BWAC will look to acquire 100% of the target, but may adjust its strategy to acquire a majority, or controlling interest, of the company if necessary. However, according to Nasdaq listing rules, the initial business acquisition must “have a fair market value of at least 80% of the assets held in the trust account at the time of the agreement.”
With a mission of investing in a “healthier, cleaner, smarter world,” N*GEN has previously placed capital in better-for-you brands including Zevia, Bare Snacks, Bright Farms and Revolution Foods, as well what it refers to as the “smart city sector.” The SPAC will allow members of the firm to take this philosophy to the wider marketplace, targeting the acquisition of a B2B or B2C company from the consumer, health and wellness, or technologies sectors.
Focusing on the segment not only is a good choice for the planet, but also a solid business decision, the group argues. According to a prospectus filed by BWAC with the SEC, the global wellness economy was valued at $4.5 trillion in 2018, and grew roughly twice as fast as the economy as a whole.
“The way consumers live and work is under dynamic upheaval, creating opportunities for forward-thinking and new business models,” the prospectus notes. “We will especially focus on sectors being transformed by massive change, which we believe creates enormous opportunities for younger companies to capture market share by utilizing new business models, routes to market and cleaner ingredients.”
Ripley currently leads N*GEN’s investing efforts in consumer companies, and serves on the board of Heineken, N.V. She previously was responsible for corporate business development for Altria Group, parent company of Kraft Food and Miller Brewing Company.
