WASHINGTON (dpa-AFX) - Basketball star Kevin Durant is taking on a new role. He will function as the co-CEO of Infinite Acquisition Corp., which had filed for an initial public offering worth $200 million on Wednesday, reported Reuters.
The special purpose acquisition company or SPAC will trade on the New York Stock Exchange under the ticker 'NFNT.U'.
The company plans to sell around 20 million shares at the rate of $10 and will return back the money to the investors if it doesn't acquire a company within 24 months. Infinite Acquisition is looking to invest in companies in areas like sports, e-commerce, and cryptocurrency.
A SPAC is basically a blank check company, which raises funds through an IPO to acquire existing companies. The funds are kept in a two-year escrow account, and once the deal to acquire an existing company comes along, the deal is presented before investors.
The investors of the SPAC have the option of exiting the company if they are not happy with a proposal. However, if a deal is okayed, investors have the option to purchase stock warrants, i.e, buying shares of the new company purchased at a future date.
Durant is committed to investments through his firm Thirty-Five Ventures. In October, he invested in another IPO for secondary-ticket service SeatGeek, which signed a takeover deal for $1.35 billion with RedBull Acquisition Corp.
The basketball star is also a major investor in a big Major League Soccer club and banking app Goalsetter. In April, he joined hip-hop star Drake and Amazon co-founder Jeff Bezo's investment firm to become a shareholder in sports media firm Overtime.
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