DayDayCook (“DDC” or the “Company”), a leading content driven direct-to-consumer brand in Hong Kong and Mainland China, announces today that it has entered into a definitive merger agreement (the “Merger Agreement”) with Ace Global Business Acquisition Limited (“Ace”) (NASDAQ:ACBA, ACBAU, ACBAW))), a special purpose acquisition company, providing for a business combination that will result in DayDayCook becoming a publicly listed company. Upon closing of the transactions, the parties plan to remain NASDAQ-listed under a new ticker symbol.
As part of the transaction, Ace aims to complete a private investment in public equity (PIPE) of approximately $30-40MM, and the combined company will have a pro forma firm value of approximately $377-387MM at closing, assuming no shareholder redemption. DayDayCook will receive $46.9MM in cash from Ace’s trust account.
DayDayCook’s current management team will continue running the combined Company after the transaction.
“Today, DDC is thrilled to announce the merger with Ace to drive the creation of shareholder value. With the success and experience of the Group’s entry to the RTH, RTC and plant-based products in the market over the past two years, management expects the Group’s revenue will increase rapidly over the next few years, as market trend dictates that RTH and RTC foods’ penetration will continue to deepen in the foreseeable future. DDC expects to further develop its new RTH and RTC lines and focus on plant-based products. The proportion of the RTC and plant-based products are expected to increase significantly in the future,” said Norma Chu, Founder and CEO of DDC.
“Ace Global’s goal has always been to build the foundation of a successful public company via a merger. Throughout this period, we have been looking for the best target company to merge with, holding firmly to that standard with diligence and patience. We are extremely proud and honored to become associated with DDC, a company with an accomplished management team that will be as good in creating sustainable shareholder value as they have been in developing innovative future food culture that would bring convenience to people’s lives,” said Eugene Wong, CEO of Ace. “We are excited to be a part of this merger and we look forward to working together to complete the transaction.”
DayDayCook is a digital publisher and merchandiser company, which is currently one of the leading content-driven lifestyle brands for young food lovers. The main products of DDC are ready-to-heat (RTH), ready-to-cook (RTC) and plant-based food products, which bring convenience and quality food choices to the people. DayDayCook produces culinary and lifestyle content across major social media and e-commerce platforms, promoting its products to attract and retain customers. DDC has accumulated over 3 billion video views and more than 10 million paid customers worldwide.
The RTC market size is expected to grow at 20% CAGR to reach USD 150bn in 2027, driven by structural changes in consumer behavior and preferences. DDC is well positioned to capture this opportunity, leveraging its Omni-channel sales strategy to span across traditional e-commerce, social-commerce, and offline retailer networks. The company also has strategic partnerships with key manufacturers to build a strong and nimble supply chain.
DayDayCook has also launched plant-based products to address the rising demand for healthier meal choices amongst consumers as well as to promote a quality lifestyle to the company’s customer base. Increasing contribution from plant-based products both in terms of revenue and number of SKUs is a core strategy for DDC. This month, DayDayCook announced a strategic investment with Proterra, further strengthening the company’s commitment in future plant-based business developments.
Key Transaction Terms
Under the terms of the Merger Agreement, Ace will acquire DDC, resulting in DDC being a listed company on the Nasdaq Capital Market. At the effective time of the transaction, DDC’s shareholders and management will receive 30 million shares of Ace’s common stock. In addition, DDC shareholders will be entitled to receive earn-out consideration of up to an additional 3.6 million shares of Ace’s common stock, subject to DDC achieving certain share price thresholds and revenue targets prior to certain future dates, as set forth in the Merger Agreement.
The Benchmark Company, LLC and Brookline Capital Markets, a Division of Arcadia Securities, LLC are acting as financial advisors for this transaction. DLA Piper LLP is acting as legal advisor to Ace Global Business Acquisition Limited. Loeb & Loeb LLP is acting as the legal advisor to DDC.
The description of the transaction contained herein is only a summary and is qualified in its entirety by reference to the Merger Agreement relating to the transaction, a copy of which will be filed by Ace with the SEC as an exhibit to a Current Report on Form 8-K.
About DayDayCook
DayDayCook is a leading content driven direct-to-consumer brand in China with millions of active viewers and paid customers nationwide. DayDayCook’s vision is to inspire Gen-Z consumers to enjoy cooking and discover a better lifestyle through convenient and healthy product offerings. DayDayCook creates video content with more than 1.4B views globally. Besides fun cooking videos, DayDayCook also offers a full suite of healthy and convenient ready-to-cook meal solutions serving millions of customers each year in Chinese Mainland and Hong Kong.