Angel Studios to go public via $1.6 billion SPAC deal

(Reuters) -Angel Studios said on Wednesday it would go public in the U.S. via a merger with blank-check firm Southport Acquisition Corp in a deal valued at $1.6 billion.

The company, whose movie “Sound of Freedom” was among the top 10 highest grossers in the U.S. last year, was co-founded in 2013 by CEO Neal Harmon.

Angel Studios generates revenue from licensing its films and television shows to streaming platforms such as Amazon (NASDAQ:) Prime, Apple (NASDAQ:) TV+ and Netflix (NASDAQ:), along with theatrical distribution of its movies.

The company’s Class A common stock is expected to be listed on the New York Stock Exchange or Nasdaq under the ticker symbol “AGSD” upon the closing of the transaction.

Existing Angel Studios stockholders will roll 100% of their equity into the combined company.

Angel Studios’ revenue rose to $45 million in the six months ended June 30, compared with $39 million a year earlier.

Blank-check companies, also known as special purpose acquisition companies, offer an alternative route to firms to list their shares.

SPACs gained popularity in 2020 but have since seen a decline in interest due to strict regulatory oversight and challenging economic conditions.

Last week, Semnur Pharmaceuticals said it would go public via a SPAC deal worth $2.5 billion.