When is pet care company Wag Labs going public? - Kalkine Media

February 07, 2022 04:27 PM PST | By Rupam Roy
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Highlights

  • Wag Labs said it plans to go public by merging with SPAC firm CHW Acquisition Corp.
  • The merger is expected to raise gross cash proceeds of about US$175 million.
  • Wag is expected to start trading on Nasdaq under the ticker symbol "PET".

Petcare company Wag Labs Inc. has announced plans to go public through a merger with a special purpose acquisition company. The deal would value Wag Labs at US$350 million.

The Los Angeles-based company said it expects to raise US$175 million from the merger with CHW Acquisition Corp. Wag shareholders will have a majority stake in the combined entity.

Their investors include Battery Ventures, ACME Capital, Tenaya Capital, and General Catalyst. In addition, they will receive US$30 million in debt financing from Blue Torch Capital.

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SPAC companies are public listed firms that do not have any specific business but use their money in merger activities. They help private companies to go public through mergers.

The combined entity will be called Wag Group Co and begin trading on Nasdaq under the ticker symbol "PET". The deal is expected to be close in the second quarter of 2022. The financial advisor for Wag is Oppenheimer & Co., while Chardan would serve for CHW in the deal. However, the date for the stock launch was not immediately revealed.

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Wag plans to go public by merging with the SPAC firm, CHW Acquisition Corp.

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Wag's business areas

Wag Labs Inc. provide services like dog-walking, pet sitting, training, and drop-in checks.

The company offers its monthly subscription-based services in 50 states.

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According to Wag CEO Garrett Smallwood, at least one in every five households in the US has adopted a pet since the Covid-19 pandemic started in the country in March 2020. He added that the new pet owners are the company’s primary target.

Smallwood said the new pet owners spent most of the last two years locked inside their homes with their pets, and now they must return to their work. So, the "guilt for leaving their pets for the first time" would press them to seek out the company's services.

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Bottomline

CHW Acquisition Corp is led by President Paul Norman and co-CEOs Jonah Raskas and Mark Grundman. Norman had served as an executive in Kellogg Co. earlier. In its IPO last August, CHW had raised around US$125 million.


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