Cannabis-Focused Marketing Software Provider Springbig To Go Public Via SPAC

A special purpose acquisition company Tuatara Capital Acquisition Corporation (NASDAQ:TCAC) announced Tuesday that it has signed an agreement for a business combination that would result in springbig’s public listing. springbig is a provider of marketing software to the cannabis industry.

The Deal Highlights

Under the agreement, the combined company will stay listed on the Nasdaq Stock Market under the symbol "SBIG." The transaction is expected to close in the first quarter of fiscal 2022.

The combined company is projected to have an equity value of around $500 million, assuming $10 per share price and no redemptions by Tuatara stockholders. Additionally, a $13 million PIPE investment has commitments from Tuatara Capital and existing investors, including TVC Capital, Key Investment Partners and springbig's founder and CEO Jeffrey Harris.

After the transaction closes, Harris will continue to lead the company and springbig’s CFO Paul Sykes will also continue in his role. Sergey Sherman, managing director at Tuatara Capital and CFO of TCAC, will join the board of directors of the merged company.

The transaction, which has been unanimously approved by the boards of directors of TCAC and springbig, is subject to approval by TCAC stockholders and other customary closing conditions.

"In the rapidly evolving cannabis industry, with numerous regulations and restrictions, springbig has emerged as a market leader in direct-to-consumer marketing and engagement,” Al Foreman, CEO of TCAC stated. “springbig's technology platform drives loyalty and customer engagement, and in this regulated environment, a high level of engagement is crucial for cannabis retailers and brands to reach their customers in an increasingly competitive market. The extremely talented and experienced team at springbig has harnessed the technologies necessary to address this market opportunity, and they are well-positioned for long-term, sustainable growth as new states progress legalization frameworks and with the potential for Federal cannabis policy reform on the horizon."

About springbig

springbig, founded in 2017, has since grown to become one of the largest loyalty and marketing platforms in the U.S. cannabis industry. It serves more than 1,000 clients across the U.S. and Canada, comprising more than 2,300 retail locations, with over 41 million consumers enrolled in its proven B2B2C platform. Via this platform more than 90 million transactions have been processed in the past twelve months with attributable gross merchandise value of over $7 billion.

The company offers a comprehensive suite of category-leading solutions that clients can use to help increase customer retention, build customer loyalty, and promote brand awareness through services such as digital communications, text and email messaging as well as industry-leading reporting and analytics.

springbig has grown revenue at a CAGR of 105% since 2019 and is on track to deliver $24 million in revenue for 2021 via its B2B SaaS model.

“The key to our success has been empowering our clients by connecting them with their customers and engaging directly as they scale their businesses,” said 

Jeffrey Harris, founder and CEO of springbig.

Price Action

Tuatara Capital Acquisition Corporation’s shares were trading 0.41% higher at $9.80 per share at the time of writing late Tuesday morning.

Photo: Courtesy of Campaign Creators on Unsplash