SVES, an off-price apparel distribution company based in Florida, plansd to merge with Relativity Acquisition at a pro forma enterprise value of $707.25 million.
If approved, upon closing SVES expects to list on the Nasdaq under the new ticker symbol SVES.
The press release announcing the deal offered little detail on the transaction, which is expected to close in the third quarter. Initially focused on cannabis companies, Relativity raised $143.75M in a February 2022 IPO.
SVES was founded in 2017 to fill a gap in the retail supply chain by providing full-price retail fashion brands an efficient and effective way to monetize overstocked items.
Relativity last month announced that it was notifed by Nasdaq of non-compliance with multiple listing rules and faces removal from the exchange.
Relativity said the issues include failure to maintain a minimum of $50 million market value of listed securities, as well as falling below 1.1 million shares, and dropping below the $15 million minimum in market value of publicly held shares. In addition, the notice stated that Relativity does not comply with either of the alternative requirements for continued listing or the requirement for a listing on The Nasdaq Capital Market.
The notice also indicated that Nasdaq staff have concerns that the SPAC may no longer comply with the minimum 400 total holders requirement due to the substantial number of shareholder redemptions and low number of shares remaining outstanding.
The SPAC has requested a hearing to appeal the Nasdaq staff's delisting determination. Read more.
Source: Overstock Clothing Distributor SVES Merging with Relativity Acquisition in 7M Deal