Colin Kaepernick creates SPAC, with an eye on social justice



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Former NFL quarterback Colin Kaepernick is the latest to set up a special purpose acquisition company, seeking to raise up to $ 287.5 million in an initial public offering.

According to a filing with the Securities and Exchange Commission, Kaepernick – the former San Francisco 49ers quarterback who took a knee during the national anthem to protest systemic racism and did not play in the NFL since 2016 – is the co-sponsor and co-chair of Mission Advancement Corp., working in partnership with The Najafi Cos., a private equity firm.

Mission Advancement will focus on issues of racial justice and diversity, and aims to acquire a mainstream business with an enterprise value of approximately $ 1 billion.

“The mission of the Najafi / Kaepernick partnership is to identify, acquire and advance a business with the aim of creating significant financial and societal value,” the file states. “We believe that Mr. Kaepernick’s considerable business experience, combined with his long-term leadership on issues of racial equity and justice, will support our success in identifying a potential target company and adding transformational value to the merged entity.

The filing noted that Kaepernick has worked with global brands such as Nike NKE,
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Dis from disney,
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Netflix NFLX,
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Apple AAPL,
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Beats by Dre, Medium, Electronic Arts EA,
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AMZN from Amazon,
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Audible and Ben & Jerry’s in recent years.

As an indication of its mission, the board of directors of the company is made up of 100% Black, Indigenous and people of color, and is predominantly female. The directors include Attica Jaques, chief marketing officer of Google, former Apple executive Omar Johnson and Birchbox co-founder and CEO Katia Beauchamp.

PSPCs are blank check companies that have exploded in popularity in recent years. They are basically empty-hull companies looking for a company to acquire and go public, in a faster process than a traditional IPO. So far this year, 131 PSPCs have raised $ 39.9 billion, according to SPAC Research. That’s already about half as many PSPCs as in 2020.

23andMe Inc. said last week that it would go public through a merger with a SPAC owned by Richard Branson, and hedge fund Elliott Management would consider creating a SPAC.

Billionaire investor Sam Zell said on Tuesday that the PSPC craze reminded him of the late 1990s. “It’s still rampant speculation, just like the dot-com boom,” he told CNBC in an interview.

Although he said that PSPCs can be very effective, Zell said he was concerned that many are built on fragile financial fundamentals.

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