A new SPAC launched by two OKCupid co-founders and a top ex-Tinder executive had a heartbreaker of an opening day Wednesday following its $200M IPO, falling 2% on a day when rival dating firm Bumble also continued to stumble.
- Corazon Capital V838 Monoceros Corp. (CRZN.U) never even reached its $10 IPO price, trading at no higher than $9.84 before closing at $9.80.
- OkCupid co-founder and former Match Group CEO Sam Yagan serves as the new special purpose acquisition company’s CEO.
- Fellow OkCupid co-founder Christian Rudder will sit on Corazon’s board, while Phil Schwarz, former chief marketing officer at Match-owned Tinder, will serve as the SPAC’s chief strategy officer.
- CRZN.U filed for an initial public offering last month, just days after Bumble (NASDAQ:BMBL) staged what appeared to be a hugely successful IPO.
- Bumble’s offering priced at $43, above an already increased expected price range, and then soared as much as 85.1% on its first trading day to as high as $79.60.
- However, BMBL has mostly slid since then, falling another 4.9% Wednesday to close at $62.68. That’s below Bumble’s $70.55 first-day closing price.
- Bumble, a women-centric dating and social app that requires females to approach males first in heterosexual dating contacts, was created by Tinder co-founder Whitney Wolfe Herd.
- Wolfe Herd had previously acrimoniously split from Tinder and sued for sexual harassment. She reportedly claimed in her lawsuit, which eventually settled out of court, that Yagan failed to stop others from harassing her at a time when he headed Tinder’s parent Match (NASDAQ:MTCH). Yagan took over Match Group after that company bought OkCupid.
- As for Corazon Capital V838 Monoceros Corp., the SPAC’s managers wrote in an S-1 filing with the U.S. Securities and Exchange Commission that “we will look for opportunities with certain business attributes or in certain categories, including but not limited to businesses [in] sectors such as education, social media and dating, and e-commerce.”
- Corazon Capital V838 Monoceros Corp. appears to take its name from “corazon,” the Spanish word for “heart,” and “V838 Monoceros.” That last part apparently refers to V838 Monocerotis, a binary star system and luminous red nova and in the constellation Monoceros.
The SPAC sold 20M investing units priced at $10 apiece, with each consisting of one Class A share and 0.33 warrants to buy a second share at $11.50 in the future.
CRZN.U also offered underwriters the option to buy 3M units for overallotments, possibly raising another $30M.
Additionally, the SPAC’s sponsor plans to invest $7M for 4.67M warrants at $1.50 each.
The new SPAC's units trade on the Nasdaq under the ticker “CRZN.U." Its shares and warrants will also eventually list separately under the symbols “CRZN” and “CRZN.W,” respectively.
- Yagan is a serial entrepreneur who served until recently as CEO of ShopRunner, an e-commerce platform that FedEx Corp. (NYSE:FDX) bought in December for an undisclosed sum.
- He also previously served on Tinder and Grindr’s boards and co-founded SparkNotes while a Harvard University student. Yagan eventually sold SparkNotes to Barnes & Noble (NYSE:BNED).
- As for Bumble, Seeking Alpha contributor Gary Alexander recently wrote that its pullback creates "a strong opportunity for investors to jump in at a reasonable price."