Omeed Malik’s SPAC reportedly close to deal with gun retailer GrabAGun

(Bloomberg) — Omeed Malik’s special purpose acquisition company Colombier Acquisition Corp. II is close to a deal with online gun retailer GrabAGun, but many other Wall Street investors are likely to shy away from the deal because of ESG principles.

The deal, which values ​​GrabAGun at about $150 million, could be announced as early as Monday if talks don’t break down at the last minute, according to people familiar with the matter who asked not to be identified discussing confidential information.

Malik is a former Bank of America executive and current chairman and CEO of Colombier. He is also the founder of merchant bank Farvahar Partners and investment firm 1789 Capital, whose mission includes supporting companies influenced by environmental, social and governance investment principles and operating in parallel economies that cater to conservative values.

Malik’s first SPAC merged with PSQ Holdings Inc., owner of online marketplace PublicSquare, aiming to connect “patriotic” consumers with businesses like EveryLife, a self-described “pro-life” diaper company manufacturer. He is part of a core group of financial backers for President-elect Donald Trump’s campaign.

In October last year, PSQ launched a payments company that it expects to process more than $1.8 billion in gun-related transactions by 2025, a person familiar with the matter told Bloomberg. Last month, PSQ appointed 1789 partner Donald Trump Jr. to its board of directors.

Dallas-based Grab AGun has become profitable under CEO Marc Nemati and will generate about $100 million in revenue in 2024, people familiar with the matter said. The company, which was founded in 2011 and sells guns, ammunition and other apparel, cites the Second Amendment on its website and says it believes its “American responsibility” is to help consumers understand and legally protect their guns and accessories.

Representatives for GrabAGun and Colombier declined to comment.

Colombier, based in Palm Beach, Florida, raised $170 million in its November 2023 initial public offering. Its shares closed at $11.79 per share on Friday, giving it a market capitalization of about $200 million. In a securities filing ahead of the IPO, the company said it may focus on opportunities including “in sectors where value has been impaired due to certain investor mandates.”

“We believe that millions of Americans are willing and able to vote with their dollars every day, and that businesses are just beginning to take advantage of this trend,” Colombier said in the filing. “We envision an economy in which values ​​align Business transactions will become standardized.”

The GrabAGun deal comes as the number of unadjusted criminal background checks in the United States rose to 2.76 million in December, the highest level in about 20 months, according to data from the FBI’s National Instant Criminal Background Check System. The data is considered a proxy for gun sales, although background checks do not mean a gun sale occurred.

More stories like this can be found at Bloomberg.com