Marijuana industry marketing and loyalty company Springbig plans to go public by way of a merger with Tuatara Capital Acquisition, a special purpose acquisition corporation (SPAC).
The transaction will create a company worth roughly $500 million, including approximately $200 million worth of cash on hand after closing, according to a Tuesday news release.
Springbig serves more than 1,000 cannabis industry clients in the United States and Canada, including more than 2,300 retail locations, according to the release.
The company’s services include text and email marketing, a customer loyalty platform and data analytics.
Tuatara said Springbig’s business-to-business, software-as-a-service model “is on track to deliver $24 million in revenue for 2021.”
Springbig also has “a wealth of data assets driving proprietary insights and has a robust pipeline of multiple potentially actionable M&A targets across various verticals,” the release noted.
The estimated $500 million value of the combined company is based on a price of $10 per share.
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Springbig founder and CEO Jeffrey Harris will continue to lead the company after the transaction closes.
The deal is subject to approval by Tuatara shareholders and other conditions.
Springbig plans to trade on the Nasdaq exchange under the ticker symbol SBIG.
Tuatara shares trade on the Nasdaq as TCACU.