What happened
Shares of Northern Star Acquisition (STIC) popped 12.2% in 3:10 p.m. EDT trading Friday, after shareholders of the special purpose acquisition company (SPAC) voted to approve its acquisition of online pet products store BarkBox.
So what
Northern Star's successful shareholder vote sets the stage for the company to proceed with its acquisition of BarkBox on June 1, and for the combined company -- by this point renamed The Original BARK Company -- to begin trading on the NYSE on June 2 under new ticker symbol BARK.
Image source: Getty Images.
Now what
Starting June 2, investors' focus will turn from the likelihood that the acquisition will be effected to how effective BARK will be at growing its business and earning profits. In that regard, 10 days ago, Northern Star and BARK jointly announced the latter's fiscal Q4 and full-year 2021 financial results.
Sales increased 79% year over year for the quarter and 69% for the year. Although losses increased to $7.1 million for the quarter, they held steady at $31.4 million for the year.
Heading into new fiscal year 2022, management projects 56% quarterly sales growth to somewhere between $116 million and $118 million in Q1. For the entire year, management says sales could grow to $516 million (36% sales growth), with losses of $41 million -- 30% worse than last year.
