Ace Global Business Acquisition Limited Announces Merger Agreement with DDC Enterprise Limited
Ace Global Business Acquisition Limited (NASDAQ: ACBA, ACBAU, ACBAW), a special purpose acquisition company, announced today that it has entered into a definitive share exchange agreement with DDC Enterprise Limited, a digital publisher and merchandiser company, providing for a business combination that will result in DDC becoming a publicly listed company. Upon the closing of the transactions, the parties plan to remain NASDAQ-listed under a new ticker symbol.
DDC and its subsidiaries, i.e. the Group, is a digital publisher and merchandiser company running the brand DayDayCook, which is currently one of the leading content-driven lifestyle brands for young food lovers. The main products of the Group are ready-to-heat (RTH), ready-to-cook (RTC) and plant-based food products, which bring convenience and quality food choices to the people. The Group produces culinary and lifestyle content across major social media platforms, promoting its products to attract and retain customers. By the end of July, it had 80 million active viewers, 5 million paid customers and two experience centres. DDC’s current management team will continue running the combined company after the transaction.
DDC is a private company incorporated in the British Virgin Islands (BVI) in 2012, which started its business in Hong Kong and expanded its business to Shanghai, PRC in 2015, whereupon it registered by the way of continuation in the Cayman Islands in the same year. DDC and its subsidiaries, i.e. the Group, is a digital publisher and merchandiser for Asian cooking based in Hong Kong and Mainland China. The Group mainly runs the leading content-driven lifestyle brand, DayDayCook for young food lovers, who are seeking quality food and convenience from ready-to-heat (RTH), ready-to-cook (RTC) and plant-based food products. Omni-channel approach is adopted by the Group to promote and sell their products, including online, offline and social commerce channels. The Group also continuously builds brand recognition and fan base through online video contents, such as recipe video, product evaluation, live streaming and advertising videos.
Under the terms of the Merger Agreement, Ace will merge with DDC, resulting in DDC being a listed company on the Nasdaq Capital Market. At the effective time of the transaction, DDC’s shareholders and management will receive 30 million shares of Ace’s ordinary shares. In addition, DDC shareholders will be entitled to receive earnout consideration of up to an additional 3.6 million shares of Ace’s ordinary shares, subject to DDC achieving certain revenue targets and share price thresholds prior to certain future dates, as set forth in the Merger Agreement.
The Benchmark Company, LLC and Brookline Capital Markets, a Division of Arcadia Securities, LLC are acting as financial advisors to the Company for this transaction. DLA Piper LLP is acting as legal advisor to Ace Global Business Acquisition Limited. Loeb & Loeb LLP is acting as the legal advisor to DDC Enterprise Limited.