Market Overview

A Closer Look At The FMCI-Tattooed Chef Deal

A Closer Look At The FMCI-Tattooed Chef Deal

What Happened: Special purpose acquisition companies have continued to make the news.

Stocks such as Draft Kings (NASDAQ: DKNG), Virgin Galactic (NASDAQ: SPCE) and Nikola Motors (NASDAQ: NKLA) have shown double- to triple-digit growth in their first weeks of trading.

Last week, FMCI (NASDAQ: FMCI) made headlines when it announced plans to merge with the plant-based food company Tattooed Chef.

The merger has not occurred yet, but if it's successful, investors will have the opportunity to own shares in this high-growth innovative company.

Why It Matters: Tattooed Chef offers a private label presence in top grocery stores like Costco (NASDAQ: COST) and Walmart (NYSE: WMT).

Tattooed Chef's private label is a key factor that separates it from competition like Beyond Meat (NASDAQ: BYND).

Unlike many SPACs, FMCI gives investors an opportunity to invest in businesses with existing products and customers.

What’s Next: The plant-based food market has grown 29% in the past two years. and this growth is expected to continue.

Tattooed Chef has taken advantage of this opportunity. From 2018 to 2019, the company increased revenues from $47.9 million to $84.9 million. This 77% growth rate is projected to continue, as the company expects to have $222 million in yearly revenue by 2022.

This growth is seen in many of Tattooed Chef’s products, such as the Acai Bowl. The sales revenues from this product increased from $1.2 million in the first six months to $9.2 million by the end of the year.

Photo by Guapi-Tecnologies via Wikimedia.

  • Track Record of Products
  • Sales Growth Projections

Related Articles (FMCI + BYND)

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