Gunsynd backs £1.64mln Media Tech SPAC fund raise

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Gunsynd PLC (LON:GUN) has invested £50,000 in Media Tech SPAC Plc (MTS), a public unlisted special purpose acquisition company.

The investment comprises a subscription for 1.25mln shares at 4p and is part of a £1.64   capital raising.

Following the fundraise, MTS will have 82.5mln ordinary shares in issue for a pro-forma equity valuation of approximately £3.3mln.

The SPAC will use the money to carry out its search for a suitable acquisition, which is likely to be in e-commerce, new media and/or immersive experiences sectors.  

MTS said it is looking to carry out an IPO on London Stock Exchange during the second half of 2021.

Media Tech SPAC has partnerships with Riverfort Global Capital and Sure Valley Ventures, which will provide a deal flow and is led by CEO John Mahtani, Non-Executive Chairman Rick Senat and Chief Media Officer Celia Li.

John Mahtani, CEO of MTS PLC, commented: “MTS PLC is delighted to welcome the participation of Gunsynd PLC in our pre-IPO fundraise

“We have received overwhelming interest from investors and companies since the inception of the company.”

SPAC have soared in popularity recently, especially in the US, as they can offer a cheaper route to IPO for a business.

Funds channelled into SPACS over the last year have hit US$70bn, according to Goldman Sachs; though other sources put the amount at more than US$83bn.

So far, it’s largely been a US phenomenon, with examples of companies that have joined the market via SPACs including space tourism company Virgin Galactic Holdings Inc (NYSE:SPCE), online betting outfit Draftkings Inc (NASDAQ:DKNG) and electric battery developer QuantumScape Corp (NYSE:QS).

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