Westrock Coffee to make public debut on Monday after SPAC merger

Westrock Coffee

29/08/2022 13:51

** Shares of Westrock Coffee Company  WEST.O  to start
trading under ticker "WEST" on Nasdaq after SPAC deal
    ** Westrock announces closing of merger with special-purpose
acquisition company Riverview Acquisition (RVAC) and new $300
mln credit facility  urn:newsml:reuters.com:*:nBw9lKhv5a
    ** The $1.1 bln deal announced in Apr was to provide the
Arkansas-based co $500 mln, including $250 mln PIPE (private
placement in public equity)  urn:newsml:reuters.com:*:nL3N2W21DD
    ** According to filing on Fri https://www.sec.gov/Archives/edgar/data/1846136/000114036122031054/brhc10041279_425.htm,
 ~74% of RVAC shareholders redeemed their holdings, leaving the
SPAC with ~$66 mln
    ** Westrock earlier this month reported Q2 net sales of $223
mln, up 31% yr/yr, and net loss of $5.8 mln vs 6.1 mln loss a
yr-ago
    ** WEST shares up ~4% on light volume before the bell. RVAC
shares on Fri closed at $11.15
    ** SPACs are shell cos raise fund from investors and list
publicly in order to acquire a private entity and take it public
    ** The market for SPACs has soured this year amid surging
interest rates, tightened regulation, massive shareholder
redemptions and poor post-merger share price performance

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))