Tom Brady-backed Hypebeast to uplist to Nasdaq through SPAC merger

Online fashion and lifestyle platform Hypebeast (OTCPK:HYPBY) (HYPE) plans to merge with SPAC Iron Spark I (ISAA) through a deal backed by celebrity athletes Tom Brady, Naomi Osaka and Tony Hawk.

The deal will provide the combined company with $180M in gross proceeds, with an enterprise value of $353M and a pro form equity value of $534M.

The transaction will be financed in part by a $13.3M pipe that includes star quarterback Tom Brady, tennis superstar Naomi Osaka, skateboarding legend Tony Hawk, singer Adam Levine, actor Jonah Hill, along with Airbnb founder Joe Gebbia, Thirty Five Ventures co-founders Kevin Durant and Rich Kleiman, Irongrey, South Korean entertainment group The Black Label, and Electric Feel Ventures.

Former Nike President Trevor Edwards is expected to be nominated to the combined company’s board after the closing.

Founded in Hong Kong as a sneaker blog, Hypebeast has three divisions: Hypemedia, which contains its editorial and social media operations; Hypemaker, an in-house production agency; and HBX, an omnichannel shopping platform. Hypebeast is expected to generate fiscal 2022 revenue of $112M or more, the companies said.

After the closing, which is subject to shareholder approval by both companies, Hypebeast expects be listed on both Nasdaq under the symbol HYPE and the Hong Kong exchange. The stock is currently listed OTC in the US. The closing is expected during the third quarter.

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