HYPEBEAST looks to break into US market after SPAC deal

Hong Kong-based media and eCommerce company HYPEBEAST will merge with publicly-traded special purpose acquisition company (SPAC) Iron Spark to become dual-listed on NASDAQ and the Hong Kong Stock Exchange. Iron Spark is special purpose acquisition company (SPAC) that targets a business at the intersection of commerce, technology and culture. 

The company said the merger is expected to provide up to US$180 million in total gross proceeds and is expected to result in a pro forma equity valuation of US$534 million. HYPEBEAST intends to use transaction proceeds to make investments across technology, talent, brand experiences, and marketing in support of continued growth as an omnichannel media and eCommerce business. According to PwC, a SPAC raises capital through an IPO for the purpose of acquiring an existing operating company. Subsequently, an operating company can merge with (or be acquired by) the publicly traded SPAC and become a listed company in lieu of executing its own IPO.

After the merger, HYPEBEAST’s current management team of executive director, chairman, and CEO Kevin Ma and CFO Patrick Wong will remain in place upon transaction close. Iron Spark CEO Joshua Spear and former President of NIKE Trevor Edwards are expected to be nominated to the combined company’s board of directors.

"Partnering with Iron Spark and entering the public markets in the US will propel us to the next level. With access to new capital and talent, we will expand our universe of content, commerce, and experiences in a way that strengthens our business and community," said Ma.

According to HYPEBEAST's information, the company consists of three major divisions, including Hypemedia, an umbrella of online editorial and social media platforms; Hypemaker, an in-house creative production agency; and HBX, an eCommerce platform and omnichannel shopping portal.

Spear added, "HYPEBEAST holds a commanding seat at the intersection of culture, commerce, and technology and represents a growing cultural movement that inspires people worldwide. I can’t wait to help them seize the enormous growth opportunity in front of them.”

The merger also includes US$13.3 million from celebrities, including American football quarterback Tom Brady, tennis player Naomi Osaka; Thirty Five Ventures co-founders Kevin Durant and Rich Kleiman; professional skateboarder and founder of Birdhouse Skateboards Tony Hawk; co-founder of Airbnb, chairman of Samara and Airbnb.org Joe Gebbia.

HYPEBEAST was founded in Hong Kong in 2005 as a sneaker blog. It boasts a community of 26 million social media followers and 18 million monthly unique visitors to its digital platforms. Its loyal and global user base includes Gen Z and millennial consumers with disposable incomes and high purchase intent, as well as a diverse and highly engaged community of artists and creatives. Additionally, its creators span more than 80 countries.

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