The transaction also includes a so-called private investment in public capital (or PIPE) of $ 250 million.
Demand (and prices) for baseball cards and other collectibles have exploded lately due to the 21st century turn in business due to the new popularity of NFTs.
Topps recently expanded its business to sell digital editions of its player cards, each with a unique NFT built on blockchain technology. That creates scarcity value that makes them more desirable to collectors and more valuable.
Topps is “well placed with a universally recognized brand to capitalize on the rapidly emerging market for NFT collectibles,” Jason Mudrick, founder and chief investment officer of Mudrick Capital, said in the statement.
Eisner, who will remain Chairman of Topps after the SPAC merger is complete, added in the statement that there is “a strong emotional connection between the Topps brand and consumers of all ages.”
Topps has a “growing portfolio of strategic licensing partnerships” that will help make it profitable, he said. The company owns the famous Bazooka gum brand, as well as Ring Pop, Baby Bottle Pop and Juicy Drop candy and sour gel brands.
But given the current craze for collectibles, Topps’ core baseball card business is the main draw.
Wealthy investors are increasingly betting on sports business cards in addition to more traditional assets like stocks, bonds, and real estate.