USHG Acquisition, sponsored by an affiliate of Union Square Hospitality Group, said that, due to deteriorating capital market conditions, the SPAC has decided not to extend an agreement with Panera through which the SPAC would have participated alongside the Panera Brands’ initial public offering.
Danny Meyer, USHG Chairman and founder of Union Square Hospitality Group said, “Based on current capital market conditions, it is unlikely that an initial public offering for Panera will happen in the near-term, and so we have agreed not to extend our partnership beyond its existing June 30 expiration date.”
The deal was not structured like a traditional SPAC transaction but instead was crafted so Panera would acquire USHG, whose shareholders would have received Panera stock. Panera’s primary shareholder had agreed last November to backstop any USHG redemption if the transaction had gone to a vote.
USHG CEO Adam Sokolof said the search for a new target would move forward. The SPAC raised $250 million in a February 2021 IPO. Read more.
