Playboy is returning to public markets via a merger with SPAC Mountain Crest Acquisition

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Playboy Enterprises Inc. will return to public markets via a merger with special purpose acquisition corporation Mountain Crest Acquisition Corp. , a SPAC, or blank-check company. Once the deal has closed, Mountain Crest will change its name and trade on Nasdaq, under the ticker ‘PLBY.’ Chief Executive Ben Kohn, a former private-equity executive at Rizvi Traverse who took on the position in 2017, will retain his role along with the rest of the management team. Under the terms of the deal, Playboy shareholders will receive about 23.9 million shares of Mountain Crest valued at $10 a share, and Mountain Crest will assume outstanding debt of about $142 million for a total purchase price of about $381 million. To limit dilution, Playboy has agreed to purchase 700,000 Mountain Crest shares at $6.35 a share. Playboy shareholders have agreed to a one-year lockup, subject to a partial release if after six months the stock has traded at $14 for 20 out of 30 consecutive days. Mountain Crest has further agreed to sell $50 million of stock to investors. The deal is expected to close early in the first quarter of 2021. Playboy has been revamped over the years and now focuses on four categories; sexual wellness, including lingerie; style & apparel; gaming and lifestyle; and beauty and grooming. The company has more than $400 million in cash flows that are contracted through2029, sexual wellness products in more than 10,000 retail stores and online and branded lifestyle and digital gaming products, the companies said in a release. Mountain Crest shares were halted premarket for the news.
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