USHG Acquisition Corp. (HUGS) Discontinues Panera Brands Partnership
by Nicholas Alan Clayton on 2022-07-01 at 9:09am

USHG (NYSE:HUGS) announced this morning that it would not extend an agreement to partner in an IPO for restaurant operator Panera announced in November.

Always something of an oddity, USHG’s plan bore some semblance to Pershing Square Tontine’s (NYSE:PSTH) bid to join in Universal Music’s (AS:UMG) Amsterdam IPO. Pershing Square’s approach attempted to purchase shares ahead of the IPO and keep the SPAC running under a SPARC structure.

But, USHG instead intended to structure the transaction such that it would be acquired by Panera rather than the other way around, perhaps to avoid potential conflicts with the Investment Company Act of 1940, which was the basis for legal challenges to Pershing Square’s proposed deal. Under this structure, USHG shares would have been exchanged for Panera Brands stock at the equivalent value of its IPO price and the JAB restaurant conglomerate offered to provide a backstop.

Despite this complexity, it is the conditions of the IPO market rather than the SPAC market that appears to have nixed the deal. USHG Chairman Danny Meyer noted in the press release that it was unlikely that Panera would embark on its IPO plans in the near-term, so the SPAC decided to let the agreement’s June 30 expiration date pass without extension. The four consumer services companies that have dared to list via a traditional IPO so far in 2022 have had median returns of -29.9%.

USHG still has until March 1, 2023 to complete a transaction and will likely continue to search in hospitality and entertainment, given the experience of its sponsor, Union Square Hospitality Group, in managing a range of upscale New York City eateries.


Recent Posts
by Marlena Haddad on 2023-12-08 at 1:59pm

Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...

by Nicholas Alan Clayton on 2023-12-08 at 11:12am

Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...

by Marlena Haddad on 2023-12-08 at 10:27am

EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...

by Marlena Haddad on 2023-12-08 at 9:42am

Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...

by Nicholas Alan Clayton on 2023-12-08 at 7:48am

At the SPAC of Dawn This week ends with an unusually busy earnings calendar as 172 US-listed companies report quarterly figures today. Among them is Exela Technologies (NASDSAQ:XELA), which completed a combination with Quinpario 2 in 2017. The billing software company has gone on to do another SPAC deal on November 29, this time spinning...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved