DELRAY BEACH, Fla. — Big Rock Partners has completed the initial public offering for Big Rock Acquisition Corp. (NASDAQ: BRPAU), a special purpose acquisition company (SPAC) that will seek investments in the seniors housing sector.
The offering was for 6 million shares at $10 each, resulting in $60 million in gross proceeds for the new company. Big Rock Acquisition Corp. is aiming for a total market capitalization between $200 million and $500 million.
According to the Big Rock Partners website, the new entity will focus on private-pay seniors housing — independent living, assisted living and memory care. It will seek properties that offer “strong competitive positions, proven business models, consistent historical financial performance and attractive growth prospects.” Being publicly traded will also offer the liquidity of public capital markets and economies of scale, the company notes.
The main goal, though, is to acquire an operating company to expand Big Rock Partners' platform, which is now currently focused exclusively on developing, acquiring and owning properties, according to Richard Ackerman, CEO of Big Rock Partners.
"We're looking for a company that has 20 to 50 buildings under management, somebody that has the infrastructure and desire to grow to 200 buildings over the next few years," says Ackerman.
Under the new structure, Big Rock would continue to acquire and develop seniors housing properties and put them under the management of the acquired operator.
"Right now our company is a developer. We don’t have the operating capacity," says Ackerman. "We’re trying to grow the company into a complete platform. Big institutional investors wants a company that can do it all — manage, buy and develop."
EarlyBirdCapital Inc. acted as sole book-running manager and I-Bankers Securities Inc. acted as co-manager of the offering. Akerman LLP served as counsel to Big Rock Acquisition Corp. and Graubard Miller served as counsel to the underwriters.
Big Rock Partners' management team includes Ackerman; Lori Wittman, CFO and treasurer; and Bennett Kim, chief investment officer and corporate secretary.