Prague, May 16, 2023 – The investors of WOOD SPAC One a.s. (hereinafter "WSO") have agreed on the selection of the target company. The merger of WSO with Footshop s.r.o. ("Footshop") was approved by 78.2 percent of votes at the general meeting. The investors have thus given their formal approval to complete and settle the transaction, through which they will acquire 45 percent of the shares in the company. The transaction should be completed (i.e. Business Combination Completation Date should occur) by the end of June. Footshop's shares should then become publicly traded on the Prague Stock Exchange during the summer after the merger of the two companies.
The WSO subscription took place last year between 10 February and 29 April. During this period, over 400 investors put CZK 540 million into the SPAC's empty box. The selected target company, Footshop, was presented to investors and the public on 13 April, after which the investor approval phase took place. For the purpose of transaction with the target company Footshop, an amount of CZK 445 million is available for the investors to acquire 45% stake. The final phase of the transaction will now take place, and once the transaction is formally completed and settled, the merger of the two companies is expected to take place. This should happen during the summer of 2023.
“Investors were presented with the pre-selection of the target company already halfway through the set period and we are pleased that we have hit the mark with Footshop. It is an established but still young and dynamic company that can appeal to a wide group of mainly young people. They form a relationship with the brand, grow with it and may become supportive investors in the future. We believe that Footshop will be able to make good use of the capital raised by the acquisition with SPAC," says Oliver Polyák, Manager of Investment Banking at WOOD & Company, who is also a member of the Board of Directors of WSO.
“I very much appreciate the confirmation from investors. We have gone to great lengths to select the bride of our first SPAC, so I believe that Footshop will fulfil its investment potential and that all parties involved in the transaction will be satisfied," adds CEO of WOOD & Company, Vladimír Jaroš.
Footshop is a European retailer of premium streetwear footwear and apparel, founded in Prague in 2012 by Peter Hajduček. The company sells products online primarily in Europe, but its e-shop is available globally. Revenues for 2022 exceeded CZK 1bn, with 70 percent of sales outside the Czech Republic. Footshop also operates three premium bricks-and-mortar stores in the European capitals of Prague, Budapest and Bucharest. Thanks to its focus on the young streetwear community, the company has become a partner of global brands, such as Adidas, Nike, Converse and Vans, for the distribution of their premium lines of footwear and clothing. It is the only company in the region selling some of their product lines. In several markets, including the Czech Republic, it is the number one player in the premium streetwear footwear and apparel segment. In 2021, Footshop acquired its main competitor in the Czech Republic, Queens, under whose brand it continues to operate an e-shop. The current shareholders of Footshop are Peter Hajduček (founder and CEO), Marcel Vargaeštók (angel investor), Kaya (leading Czech venture capital fund), and Crowdberry (Czech-Slovak crowdfunding platform for investment in growth companies).
A SPAC (Special Purpose Acquisition Company) is an equity product with the potential for very high returns and the opportunity to participate in the decision-making process. The company is created as an empty shell, set up for the purpose of acquisition, and is used to fast-track a company to the stock market. WOOD SPAC One is the first-ever SPAC within the CEE region. The book-building period ran from 10 February to 29 April 2022. The minimum investment in the subscription was CZK 250,200. In accordance with the prospectus, investors were allocated warrants, in addition to shares, the first half of which investors received concurrently with the shares. The second half will vest only upon the completion of the acquisition, provided that they still own the relevant number of shares on the relevant record date. The terms of the acquisition have now been agreed, which will be followed by a vote of all investors to approve the acquisition. The final stage is the listing of the target company on the stock exchange.