|
Delaware
|
| |
2060
|
| |
38-4101973
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
| Large accelerated filer ☐ | | |
Accelerated filer
☐
|
|
| Non-accelerated filer ☒ | | |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☒
|
|
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 9 | | | |
| | | | | 27 | | | |
| | | | | 28 | | | |
| | | | | 29 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 42 | | | |
| | | | | 48 | | | |
| | | | | 61 | | | |
| | | | | 79 | | | |
| | | | | 85 | | | |
| | | | | 97 | | | |
| | | | | 98 | | | |
| | | | | 103 | | | |
| | | | | 105 | | | |
| | | | | 108 | | | |
| | | | | 111 | | | |
| | | | | 115 | | | |
| | | | | 121 | | | |
| | | | | 123 | | | |
| | | | | 123 | | | |
| | | | | 123 | | | |
| | | | | F-1 | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
DEBIT (CREDIT) |
| |
ADJ. #
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 66,000 | | | | | | | | | | | | | | | | | | | | | | | $ | 66,000 | | |
Cost of goods sold
|
| | | | 39,900 | | | | | | | | | | | | | | | | | | | | | | | | 39,900 | | |
GROSS PROFIT
|
| | | | 26,100 | | | | | | | | | | | | | | | | | | | | | | | | 26,100 | | |
Selling, general & administrative expenses .
|
| | | | 15,900 | | | | | $ | 575 | | | | | $ | 290 | | | | | | g | | | | | | 16,765 | | |
Restructuring and other non-recurring expenses
|
| | | | 400 | | | | | | | | | | | | | | | | | | | | | | | | 400 | | |
Asset impairment charges
|
| | | | 40,600 | | | | | | | | | | | $ | (40,600) | | | | | | f | | | | | | | | |
Amortization of intangibles
|
| | | | 2,500 | | | | | | | | | | | | (98) | | | | | | a | | | | | | 2,402 | | |
OPERATING INCOME (LOSS)
|
| | | | (33,300) | | | | | | (575) | | | | | | (40,408) | | | | | | | | | | | | 6,533 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 1,976 | | | | | | c | | | | | | 1,976 | | |
Interest (income)
|
| | | | | | | | | | (754) | | | | | | 754 | | | | | | b | | | | |||||
Other (income) expense, net
|
| | | | (1,700) | | | | | | | | | | | | | | | | | | | | | | | | (1,700) | | |
INCOME (LOSS) BEFORE INCOME TAXES
|
| | | | (31,600) | | | | | | 179 | | | | | | (37,678) | | | | | | | | | | | | 6,257 | | |
(Benefit) provision for income taxes
|
| | | | (3,100) | | | | | | | | | | | | 4,414 | | | | | | d | | | | | | 1,314 | | |
NET INCOME (LOSS)
|
| | | $ | (28,500) | | | | | $ | 179 | | | | | $ | (33,264) | | | | | | | | | | | $ | 4,943 | | |
| | |
HISTORICAL
|
| |
PRO FORMA
|
| ||||||
Weighted Average number of shares
|
| | | | 8,997,643(1) | | | | | | 38,426,669 | | |
Basic and diluted
|
| | | $ | (0.06)(2) | | | | | $ | 0.13 | | |
| | |
COMBINED
MERISANT/ MAFCO |
| |
ACT II
|
| |
ADJUSTMENTS
DEBIT (CREDIT) |
| |
ADJ. #
|
| |
PRO FORMA
|
| |||||||||||||||
Product revenues
|
| | | $ | 272,200 | | | | | | | | | | | | | | | | | | | | | | | $ | 272,200 | | |
Cost of goods sold
|
| | | | 163,600 | | | | | | | | | | | | | | | | | | | | | | | | 163,600 | | |
GROSS PROFIT
|
| | | | 108,600 | | | | | | | | | | | | | | | | | | | | | | | | 108,600 | | |
Selling, general & administrative expenses
|
| | | | 65,900 | | | | | $ | 351 | | | | | $ | 1,160 | | | | | | g | | | | | | 67,411 | | |
Restructuring and other non-recurring expenses
|
| | | | 2,200 | | | | | | | | | | | | | | | | | | | | | | | | 2,200 | | |
Amortization of intangibles
|
| | | | 10,700 | | | | | | | | | | | | (1,090) | | | | | | a | | | | | | 9,610 | | |
OPERATING INCOME
|
| | | | 29,800 | | | | | | (351) | | | | | | (70) | | | | | | | | | | | | 29,379 | | |
Interest expense on bank debt
|
| | | | | | | | | | | | | | | | 7,903 | | | | | | c | | | | | | 7,903 | | |
Interest income
|
| | | | | | | | | | (4,255) | | | | | | 4,255 | | | | | | b | | | | | | 0 | | |
Unrealized gain on Trust Account investments
|
| | | | | | | | | | (28) | | | | | | 28 | | | | | | b | | | | | | 0 | | |
Other expense, net
|
| | | | 1,400 | | | | | | | | | | | | | | | | | | | | | | | | 1,400 | | |
INCOME BEFORE INCOME TAXES
|
| | | | 28,400 | | | | | | 3,932 | | | | | | 12,256 | | | | | | | | | | | | 20,076 | | |
(Benefit) provision for incomes taxes
|
| | | | (2,500) | | | | | | | | | | | | 6,716 | | | | | | d | | | | | | 4,216 | | |
NET INCOME
|
| | | $ | 30,900 | | | | | $ | 3,932 | | | | | $ | 18,972 | | | | | | | | | | | $ | 15,860 | | |
| | |
HISTORICAL
|
| |
PRO FORMA
|
| ||||||
Weighted Average number of shares
|
| | | | 8,410,915(1) | | | | | | 38,426,669 | | |
Basic and diluted
|
| | | $ | (0.02)(2) | | | | | $ | 0.41 | | |
| | |
Combined
Merisant/MAFCO |
| |
Act II
|
| |
Adjustments
|
| |
Adj #
|
| |
Pro Forma
|
| |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10,500 | | | | | $ | 583 | | | | | $ | 42,571 | | | | | | a | | | | | $ | 53,654 | | |
Accounts receivable – net
|
| | | | 53,100 | | | | | | | | | | | | | | | | | | | | | | | | 53,100 | | |
Inventories
|
| | | | 116,400 | | | | | | | | | | | | | | | | | | | | | | | | 116,400 | | |
Prepaid expenses and other current assets
|
| | | | 6,800 | | | | | | 104 | | | | | | 1,678 | | | | | | k | | | | | | 8,582 | | |
TOTAL CURRENT ASSETS
|
| | | | 186,800 | | | | | | 687 | | | | | | 44,249 | | | | | | | | | | | | 231,736 | | |
Marketable securities held in Trust Account
|
| | | | | | | | | | 305,037 | | | | | | (305,037) | | | | | | a | | | | | | 0 | | |
Property, plant and equipment – net
|
| | | | 20,200 | | | | | | | | | | | | | | | | | | | | | | | | 20,200 | | |
Right of use asset
|
| | | | | | | | | | 267 | | | | | | | | | | | | | | | | | | 267 | | |
Goodwill
|
| | | | 113,100 | | | | | | | | | | | | (63,363) | | | | | | c | | | | | | 49,737 | | |
Other intangible assets – net
|
| | | | 225,900 | | | | | | | | | | | | 2,800 | | | | | | b | | | | | | 228,700 | | |
Other assets
|
| | | | 3,700 | | | | | | 38 | | | | | | | | | | | | | | | | | | 3,738 | | |
TOTAL ASSETS
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (321,351) | | | | | | | | | | | $ | 534,378 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 27,200 | | | | | $ | 195 | | | | | | | | | | | | | | | | | $ | 27,395 | | |
Current portion of bank debt
|
| | | | | | | | | | | | | | | $ | 5,250 | | | | | | c | | | | | | 5,250 | | |
Operating lease liability
|
| | | | | | | | | | 217 | | | | | | | | | | | | | | | | | | 217 | | |
Accrued expenses and other current liabilities
|
| | | | 21,600 | | | | | | | | | | | | | | | | | | | | | | | | 21,600 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 48,800 | | | | | | 412 | | | | | | 5,250 | | | | | | | | | | | | 54,462 | | |
Bank debt, net of current portion
|
| | | | | | | | | | | | | | | | 127,611 | | | | | | c | | | | | | 127,611 | | |
Operating lease liability, net of current portion
|
| | | | | | | | | | 65 | | | | | | | | | | | | | | | | | | 65 | | |
Deferred underwriting fee payable
|
| | | | | | | | | | 11,280 | | | | | | (11,280) | | | | | | e | | | | | | 0 | | |
Due to related party
|
| | | | 6,900 | | | | | | | | | | | | (6,900) | | | | | | j | | | | | | 0 | | |
Deferred tax liabilities, net
|
| | | | 30,900 | | | | | | | | | | | | |||||||||||||||
Other liabilities
|
| | | | 18,100 | | | | | | | | | | | | (5,900) | | | | | | j | | | | | | 12,200 | | |
TOTAL LIABILITIES
|
| | | | 104,700 | | | | | | 11,757 | | | | | | 108,781 | | | | | | | | | | | | 225,238 | | |
Ordinary shares subject to redemption
|
| | | | | | | | | | 289,272 | | | | | | (289,272) | | | | | | f | | | | |||||
Net parent investment
|
| | | | 445,000 | | | | | | | | | | | | (445,000) | | | | | | g | | | | |||||
Class A ordinary Shares, $0.0001 par value;
200,000,000 shares authorized; 1,550,484 shares issued and outstanding (excluding 28,449,516 shares subject to possible redemption) historically and 38,426,669 shares proforma |
| | | | | | | | | | | | | | | | 3 | | | | | | | | | | | | 3 | | |
Class B ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,500,000 shares issued and outstanding historically and none pro forma
|
| | | | | | | | | | 1 | | | | | | (1) | | | | | | | | | | | | 0 | | |
Additional capital
|
| | | | | | | | | | 888 | | | | | | 316,686 | | | | | | i | | | | | | 317,574 | | |
Retained earnings
|
| | | | | | | | | | 4,111 | | | | | | (12,548) | | | | | | d | | | | | | (8,437) | | |
TOTAL SHAREHOLDERS’ EQUITY
|
| | | | 445,000 | | | | | | 5,000 | | | | | | (140,860) | | | | | | | | | | | | 309,140 | | |
TOTAL LIABILITIES AND EQUITY
|
| | | $ | 549,700 | | | | | $ | 306,029 | | | | | $ | (321,351) | | | | | | | | | | | $ | 534,378 | | |
|
Cash paid to selling shareholder
|
| | | $ | 386,737 | | |
|
Accounts receivable
|
| | | $ | 53,100 | | |
|
Inventories
|
| | | | 116,400 | | |
|
Prepaids expenses and other current assets
|
| | | | 6,800 | | |
|
Property, plant and equipment
|
| | | | 20,200 | | |
|
Other assets
|
| | | | 3,700 | | |
|
Intangible assets
|
| | | | 228,700 | | |
|
Goodwill
|
| | | | 49,737 | | |
|
Accounts payable
|
| | | | (27,200) | | |
|
Accrued expenses and other current liabilities
|
| | | | (21,600) | | |
|
Deferred tax liabilities
|
| | | | (30,900) | | |
|
Other liabilities
|
| | | | (12,200) | | |
| | | | | $ | 386,737 | | |
| | |
Preliminary
Fair Value |
| |
Estimated
Useful Life in Years |
| |
Amortization
Expense for the Year Ended December 31, 2019 |
| |
Amortization
Expense for the Three Months Ended March 31, 2020 |
| ||||||||||||
Trademarks and trade names
|
| | | $ | 116,700 | | | | | | 25 | | | | | $ | 4,668 | | | | | $ | 1,167 | | |
Customer relationships
|
| | | | 93,900 | | | | | | 19 | | | | | | 4,942 | | | | | | 1,235 | | |
Product formulations
|
| | | | 18,100 | | | | | | Indefinite | | | | | | — | | | | | | — | | |
Total
|
| | | | 228,700 | | | | | | | | | | | | 9,610 | | | | | | 2,402 | | |
Less: Merisant/Mafco historical intangibles and amortization expense
|
| | | | 225,900 | | | | | | | | | | | | 10,700 | | | | | | 2,500 | | |
Pro forma adjustments
|
| | | $ | 2,800 | | | | | | | | | | | $ | (1,090) | | | | | $ | (98) | | |
| | |
Shares
Outstanding |
| |
%
|
| ||||||
Shares held by Act II Sponsor
|
| | | | 4,500,000 | | | | | | 11.71% | | |
Shares held by Seller
|
| | | | 600,000 | | | | | | 1.56% | | |
Shares held by PIPE investors
|
| | | | 7,500,000 | | | | | | 19.52% | | |
Shares held by Dicalite Management Group, Inc
|
| | | | 3,300,000 | | | | | | 8.59% | | |
Shares held by public
|
| | | | 22,526,669 | | | | | | 58.62% | | |
Total common shares o/s
|
| | | | 38,426,669 | | | | | | 100.00% | | |
|
Act II cash previously in trust as of March 31, 2020(1)
|
| | | $ | 305,037,000 | | |
|
Proceeds from PIPE(2)
|
| | | | 75,000,000 | | |
|
Proceeds from new bank debt(3)
|
| | | | 132,861,000 | | |
|
Shareholder redemptions(4)
|
| | | | 36,334,000 | | |
|
Cash retained by seller
|
| | | | (10,500,000) | | |
|
Repurchase of warrants(5)
|
| | | | (11,250,000) | | |
|
Cash consideration(6)
|
| | | | (386,737,000) | | |
|
Payment of transaction costs(7)
|
| | | | (23,828,000) | | |
|
Expenses prepaid at closing
|
| | | | (1,678,000) | | |
| | | | | $ | 42,571,000 | | |
|
Conversion of redeemable shares held by Act II public shareholders to APIC net of par value amount
|
| | | $ | 252,936,000 | | |
|
Increase in APIC attributable to stock issued to PIPE investors
|
| | | | 74,999,250 | | |
|
Decrease in APIC as the result of the repurchase of warrants
|
| | | | (11,250,000) | | |
|
Cancellation of Act II Sponsor shares
|
| | | | 300 | | |
| | | | | $ | 316,685,550 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
(In millions)
|
| |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Cost of goods sold
|
| | | | 39.9 | | | | | | 40.3 | | |
Gross profit
|
| | | | 26.1 | | | | | | 30.0 | | |
Selling, general and administrative expenses
|
| | | | 15.9 | | | | | | 15.7 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | — | | |
Restructuring and other non-recurring expenses
|
| | | | 0.4 | | | | | | 1.4 | | |
Operating (loss) income
|
| | | | (33.3) | | | | | | 10.2 | | |
Other (income), net
|
| | | | (1.7) | | | | | | (1.6) | | |
Income before income taxes
|
| | | | (31.6) | | | | | | 11.8 | | |
(Benefit) provision for income taxes
|
| | | | (3.1) | | | | | | 2.6 | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
(In millions)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
| | |
(Audited)
|
| |
(Audited)
|
| |
(Audited)
|
| |||||||||
Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
Cost of goods sold
|
| | | | 163.6 | | | | | | 167.9 | | | | | | 167.5 | | |
Gross profit
|
| | | | 108.6 | | | | | | 123.1 | | | | | | 120.5 | | |
Selling, general and administrative expenses
|
| | | | 65.9 | | | | | | 74.8 | | | | | | 77.5 | | |
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 2.2 | | | | | | 9.5 | | | | | | 13.1 | | |
Operating income
|
| | | | 29.8 | | | | | | 27.7 | | | | | | 18.8 | | |
Other expense, net
|
| | | | 1.4 | | | | | | 1.5 | | | | | | 3.9 | | |
Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
(Benefit) Provision for income taxes
|
| | | | (2.5) | | | | | | 5.3 | | | | | | (10.2) | | |
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | | 25.1 | | |
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||||||||
(In millions)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| |
(Audited)
|
| |
(Audited)
|
| |
(Audited)
|
| |||||||||||||||
Net cash provided by operating activities
|
| | | $ | 14.6 | | | | | $ | 10.5 | | | | | $ | 32.0 | | | | | $ | 34.0 | | | | | $ | 39.3 | | |
Net cash used in investing activities
|
| | | | (0.9) | | | | | | (0.4) | | | | | | (4.1) | | | | | | (2.2) | | | | | | (0.7) | | |
Net cash used in financing activities
|
| | | | (13.9) | | | | | | (12.2) | | | | | | (24.2) | | | | | | (28.8) | | | | | | (41.1) | | |
Effect of exchange rates on cash and cash equivalents
|
| | | | 0.3 | | | | | | 0.1 | | | | | | (0.5) | | | | | | — | | | | | | (0.1) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 0.1 | | | | | $ | (2.0) | | | | | $ | 3.2 | | | | | $ | 3.0 | | | | | $ | (2.6) | | |
| | |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
Thereafter
|
| ||||||||||||||||||
Minimum lease obligations(a)
|
| | | $ | 3.2 | | | | | $ | 2.8 | | | | | $ | 2.6 | | | | | $ | 2.4 | | | | | $ | 1.0 | | | | | $ | 2.2 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Sweeteners
|
| | | $ | 165.9 | | | | | $ | 173.8 | | | | | $ | 168.1 | | |
Licorice products
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Merisant – North America
|
| | | $ | 60.0 | | | | | $ | 59.0 | | | | | $ | 57.6 | | |
Merisant – Europe, Middle East and Africa
|
| | | | 76.0 | | | | | | 82.0 | | | | | | 77.9 | | |
Merisant – Asia-Pacific
|
| | | | 17.8 | | | | | | 17.0 | | | | | | 15.4 | | |
Merisant – Latin America
|
| | | | 12.1 | | | | | | 15.8 | | | | | | 17.2 | | |
Mafco Worldwide
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Branded CPG
|
| | | | 61% | | | | | | 60% | | | | | | 58% | | |
Flavors & Ingredients
|
| | | | 39% | | | | | | 40% | | | | | | 42% | | |
Brand
|
| |
Key Markets
|
| |
Price Point
|
| |
Key Product Type
|
|
Whole Earth®
|
| | United States, Puerto Rico, Australia, New Zealand, Canada | | | Premium | | | Sweeteners | |
Pure Via®
|
| |
France, UK, Belgium, Netherlands, South Africa, Mexico, Hungary, Portugal
United States
|
| |
Premium
Mid-Priced
|
| |
Sweeteners, jams
Sweeteners
|
|
Equal®
|
| |
United States, Mexico, Puerto Rico, Australia, New Zealand, Canada
South Africa
|
| |
Premium
Mid-Priced
|
| |
Sweeteners, chocolates
Sweeteners
|
|
Canderel®
|
| | France, UK, Belgium, Netherlands, South Africa, Mexico, Hungary, Portugal, Middle East | | | Premium | | | Sweeteners, jams, chocolates, granola, bars | |
Sugarly Sweet®
|
| | United States | | | Mid-Priced | | | Sweeteners | |
SweetMate®
|
| | United States, Mexico | | | Mid-Priced | | | Sweeteners | |
EqualSweet®
|
| | Argentina | | | Premium | | | Sweeteners | |
Misura,®
Mivida™ |
| | Italy | | | Premium | | | Sweeteners, supplements | |
Sucaryl™
|
| | Argentina | | | Mid-Priced | | | Sweeteners | |
Chuker™
|
| | Argentina, Central America | | | Mid-Priced | | | Sweeteners | |
Name
|
| |
Age
|
| |
Position
|
|
Irwin D. Simon | | |
61
|
| | Executive Chairman of the Board of Directors | |
Albert Manzone | | |
56
|
| | Chief Executive Officer | |
Lucas Bailey | | |
39
|
| | President, Flavors & Ingredients | |
Andrew Rusie | | |
46
|
| | Chief Financial Officer | |
Denise M. Faltischek | | |
47
|
| | Director | |
Steven M. Cohen | | |
56
|
| | Director | |
John M. McMillin | | |
67
|
| | Director | |
Anuraag Agarwal | | |
45
|
| | Director | |
Ira J. Lamel | | |
73
|
| | Director | |
Name
|
| |
Audit
Committee |
| |
Compensation
Committee |
| |
Nominating and
Corporate Governance Committee |
| |
Independent
under Rule 5605(a)(2) |
| |
Independent
under Rule 10A-3(b)(1) |
| |||||||||||||||
Irwin D. Simon
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | N/A | | |
Denise M. Faltischek‡
|
| | | | — | | | | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | N/A | | |
Ira J. Lamel*§
|
| | | | ☒ | | | | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | |
John M. McMillin†
|
| | | | ☒ | | | | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | |
Anuraag Agarwal
|
| | | | ☒ | | | | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | ☒ | | |
Steven M. Cohen
|
| | | | — | | | | | | ☒ | | | | | | ☒ | | | | | | ☒ | | | | | | N/A | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
Non-Qualified
Deferred Compensation Earnings ($)(6) |
| |
All Other
Compensation ($)(3) |
| |
Total
($) |
| |||||||||||||||||||||
Albert Manzone
Chief Executive Officer(4) |
| | | | 2019 | | | | | $ | 558,606 | | | | | | | | | | | $ | 235,553 | | | | | | — | | | | | $ | 613,124 | | | | | $ | 1,407,283 | | |
| | | | | 2018 | | | | | $ | 534,533 | | | | | $ | 551,137 | | | | | $ | 510,038 | | | | | | — | | | | | $ | 610,434 | | | | | $ | 2,206,142 | | |
Lucas Bailey
President, Flavors & Ingredients |
| | | | 2019 | | | | | $ | 780,300 | | | | | $ | 413,674 | | | | | | — | | | | | $ | 161,328 | | | | | $ | 36,105 | | | | | $ | 1,391,407 | | |
| | | | | 2018 | | | | | $ | 761,250 | | | | | $ | 437,580 | | | | | | — | | | | | | — | | | | | $ | 33,535 | | | | | $ | 1,232,365 | | |
Andrew Rusie
Chief Financial Officer(5) |
| | | | 2019 | | | | | $ | 23,438 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | $ | 23,438 | | |
Name
|
| |
Type of Award
|
| |
Performance
Period |
| |
LTIP Target Award
|
| |
LTIP
Maximum Performance |
| ||||||||||||
Albert Manzone
|
| | | | LTIP | | | | | | 2019 – 2021 | | | | | $ | 512,530 | | | | | | 200% | | |
| | | | | LTIP | | | | | | 2018 – 2020 | | | | | $ | 512,530 | | | | | | 200% | | |
| | | | | Supplemental | | | | | | 2018 – 2019 | | | | | $ | 512,530 | | | | | | 150% | | |
| | | | | LTIP | | | | | | 2017 – 2019 | | | | | $ | 512,530 | | | | | | 200% | | |
Beneficial Owner
|
| |
Number of Shares
of Common Stock |
| |
Percentage of
Outstanding Shares |
| ||||||
5% Stockholders | | | | | | | | | | | | | |
Act II Global LLC (the “Sponsor”)(1)
|
| | | | 4,500,000 | | | | | | 11.71% | | |
Dicalite Management Group, Inc.(5)
|
| | | | 3,300,000 | | | | | | 8.59% | | |
MMCAP International Inc. SPC(2)
|
| | | | 3,525,900 | | | | | | 9.1% | | |
Linden Capital L.P.(3)
|
| | | | 2,435,299 | | | | | | 6.34% | | |
Baron Small Cap Fund(7)
|
| | | | 2,701,800 | | | | | | 6.9% | | |
Millennium Management LLC(6)
|
| | | | 2,506,311 | | | | | | 6.43% | | |
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund(8)
|
| | | | 2,104,400 | | | | | | 5.41% | | |
Directors and Named Executive Officers | | | | | | | | | | | | | |
Irwin D. Simon(4)
|
| | | | — | | | | | | — | | |
Albert Manzone
|
| | | | — | | | | | | — | | |
Lucas Bailey
|
| | | | — | | | | | | — | | |
Andrew Rusie
|
| | | | — | | | | | | — | | |
Denise M. Faltischek
|
| | | | — | | | | | | — | | |
Steven M. Cohen
|
| | | | — | | | | | | — | | |
John M. McMillin(4)
|
| | | | — | | | | | | — | | |
Anuraag Agarwal(4)
|
| | | | — | | | | | | — | | |
Ira J. Lamel(4)
|
| | | | — | | | | | | — | | |
All executive officers and directors as a group (nine individuals)
|
| | | | — | | | | | | — | | |
| | |
Before the Offering
|
| | | | | | | | | | | | | |
After the Offering
|
| ||||||||||||||||||||||||||||||
Name of Selling Security Holder
|
| |
Number of
Shares of Common Stock |
| |
Number of
Warrants |
| |
Number of
Shares of Common Stock Being Offered |
| |
Number of
Warrants Being Offered |
| |
Number of
Shares of Common Stock |
| |
%
|
| |
Number of
Warrants |
| |
%
|
| ||||||||||||||||||||||||
Act II Global LLC(1)
|
| | | | 4,500,000 | | | | | | ― | | | | | | 4,500,000 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Baron Small Cap Fund(2)
|
| | | | 2,701,800 | | | | | | 1,403,600 | | | | | | 2,701,800 | | | | | | 1,403,600 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Millennium Management
LLC(3) |
| | | | 2,506,311 | | | | | | 1,081,719 | | | | | | 2,026,350 | | | | | | 1,052,700 | | | | | | 479,961 | | | | | | * | | | | | | 29,019 | | | | | | * | | |
MMCAP International Inc. SPC(4)
|
| | | | 3,150,900 | | | | | | 1,451,800 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | 2,175,000 | | | | | | 5.61% | | | | | | 750,000 | | | | | | * | | |
Monashee Investment Management LLC(5)
|
| | | | 1,080,720 | | | | | | 561,440 | | | | | | 1,080,720 | | | | | | 561,440 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Neuberger Berman Alternative Funds, Neuberger Berman Long Short Fund(6)
|
| | | | 2,104,400 | | | | | | 1,003,200 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | 753,500 | | | | | | 1.95% | | | | | | 301,400 | | | | | | 1.49% | | |
Polar Asset Management Partners
Inc.(7) |
| | | | 135,090 | | | | | | 70,180 | | | | | | 135,090 | | | | | | 70,180 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
UBS O’Connor LLC(8)
|
| | | | 1,350,900 | | | | | | 701,800 | | | | | | 1,350,900 | | | | | | 701,800 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | |
Wolverine Flagship Fund Trading
Limited(9) |
| | | | 140,635 | | | | | | 80,180 | | | | | | 135,090 | | | | | | 70,180 | | | | | | 5,545 | | | | | | * | | | | | | 10,000 | | | | | | * | | |
| Audited Combined Financial Statements for Mafco Worldwide & Merisant | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| Audited Financial Statements for Act II Global Acquisition Corp. | | | | | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| Unaudited Financial Statements for Act II Global Acquisition Corp. | | | |||||
|
Combined Financial Statements (unaudited) For the Three Months Ended March 31, 2020 and 2019
|
| | |||||
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-53 | | | |
| Mafco Worldwide & Merisant The Licorice and Sweetener Businesses of Flavors Holdings Inc. | | | |||||
|
Combined Financial Statements (unaudited) For the Three Months Ended March 31, 2020 and 2019
|
| | |||||
| Combined Financial Statements | | | | | | | |
| | | | | F-67 | | | |
| | | | | F-68 | | | |
| | | | | F-69 | | | |
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10.4 | | | | | $ | 7.2 | | |
Accounts receivable (net of allowances of $2.8 and $1.6, respectively)
|
| | | | 55.0 | | | | | | 56.6 | | |
Inventories
|
| | | | 121.1 | | | | | | 123.5 | | |
Prepaid expenses and other current assets
|
| | | | 7.3 | | | | | | 4.1 | | |
Total current assets
|
| | | | 193.8 | | | | | | 191.4 | | |
Property, plant and equipment, net
|
| | | | 20.4 | | | | | | 19.7 | | |
Goodwill
|
| | | | 130.8 | | | | | | 130.8 | | |
Other intangible assets, net
|
| | | | 251.3 | | | | | | 262.0 | | |
Other assets
|
| | | | 3.5 | | | | | | 4.1 | | |
Total assets
|
| | | $ | 599.8 | | | | | $ | 608.0 | | |
Liabilities and net parent investment | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 26.3 | | | | | $ | 24.6 | | |
Accrued expenses and other current liabilities
|
| | | | 28.1 | | | | | | 31.3 | | |
Total current liabilities
|
| | | | 54.4 | | | | | | 55.9 | | |
Due to related party
|
| | | | 8.4 | | | | | | 6.9 | | |
Deferred tax liabilities, net
|
| | | | 31.5 | | | | | | 42.2 | | |
Other liabilities
|
| | | | 17.8 | | | | | | 18.5 | | |
Net parent investment
|
| | | | 487.7 | | | | | | 484.5 | | |
Total liabilities and net parent investment
|
| | | $ | 599.8 | | | | | $ | 608.0 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
Cost of goods sold
|
| | | | 163.6 | | | | | | 167.9 | | | | | | 167.5 | | |
Gross profit
|
| | | | 108.6 | | | | | | 123.1 | | | | | | 120.5 | | |
Selling, general and administrative expenses
|
| | | | 65.9 | | | | | | 74.8 | | | | | | 77.5 | | |
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | |
Restructuring and other non-recurring expenses
|
| | | | 2.2 | | | | | | 9.5 | | | | | | 13.1 | | |
Operating income
|
| | | | 29.8 | | | | | | 27.7 | | | | | | 18.8 | | |
Other expense, net
|
| | | | 1.4 | | | | | | 1.5 | | | | | | 3.9 | | |
Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
(Benefit) provision for income taxes
|
| | | | (2.5) | | | | | | 5.3 | | | | | | (10.2) | | |
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (1.5) | | | | | | (0.6) | | | | | | 5.9 | | |
Net change in pension benefit obligation recognized
|
| | | | (0.5) | | | | | | 0.7 | | | | | | 1.3 | | |
Total other comprehensive (loss) income, net of tax
|
| | | | (2.0) | | | | | | 0.1 | | | | | | 7.2 | | |
Comprehensive income
|
| | | $ | 28.9 | | | | | $ | 21.0 | | | | | $ | 32.3 | | |
Tax (benefit) provision of other comprehensive income (loss) included in above amounts:
|
| | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | $ | — | | | | | $ | — | | | | | $ | 0.2 | | |
Net change in pension benefit obligation recognized
|
| | | | (2.7) | | | | | | 0.1 | | | | | | 0.3 | | |
Total net tax (benefit) provision included in other comprehensive
(loss) income |
| | | $ | (2.7) | | | | | $ | 0.1 | | | | | $ | 0.5 | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Beginning balance
|
| | | $ | 484.5 | | | | | $ | 499.2 | | | | | $ | 508.0 | | |
Funding to Parent, net
|
| | | | (25.7) | | | | | | (35.7) | | | | | | (41.1) | | |
Net income
|
| | | | 30.9 | | | | | | 20.9 | | | | | | 25.1 | | |
Other comprehensive (loss) income, net of tax
|
| | | | (2.0) | | | | | | 0.1 | | | | | | 7.2 | | |
Ending balance
|
| | | $ | 487.7 | | | | | $ | 484.5 | | | | | $ | 499.2 | | |
| | |
Years Ended December 31
|
| | |||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| | |||||||||||
Operating activities | | | | | | | | | | | | | | | | | | | | | ||
Net income
|
| | | $ | 30.9 | | | | | $ | 20.9 | | | | | $ | 25.1 | | | | ||
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | | | | | | | | | | | | | | | | ||
Depreciation
|
| | | | 3.0 | | | | | | 3.6 | | | | | | 3.4 | | | | ||
Amortization of intangible assets
|
| | | | 10.7 | | | | | | 11.1 | | | | | | 11.1 | | | | ||
Deferred income taxes
|
| | | | (10.5) | | | | | | (6.0) | | | | | | (14.8) | | | | ||
Loss on sale of fixed assets
|
| | | | 0.1 | | | | | | 0.5 | | | | | | 0.2 | | | | ||
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | | | ||
Accounts receivable
|
| | | | 1.5 | | | | | | 2.5 | | | | | | (7.0) | | | | ||
Inventories
|
| | | | 2.0 | | | | | | (0.7) | | | | | | 4.8 | | | | ||
Pension
|
| | | | (1.6) | | | | | | 1.6 | | | | | | 1.7 | | | | ||
Prepaid expenses and other current assets
|
| | | | (3.1) | | | | | | 0.3 | | | | | | 2.5 | | | | ||
Accounts payable, accrued liabilities and income taxes
|
| | | | (3.0) | | | | | | 0.2 | | | | | | 9.3 | | | | ||
Other, net
|
| | | | 2.0 | | | | | | — | | | | | | 3.0 | | | | ||
Net cash provided by operating activities
|
| | | | 32.0 | | | | | | 34.0 | | | | | | 39.3 | | | | ||
Investing activities | | | | | | | | | | | | | | | | | | | | | ||
Capital expenditures
|
| | | | (4.1) | | | | | | (4.1) | | | |
(3.1)
|
| ||||||
Proceeds from sale of fixed assets
|
| | | | — | | | | | | 1.9 | | | | | | 2.4 | | | | ||
Net cash used in investing activities
|
| | | | (4.1) | | | | | | (2.2) | | | | | | (0.7) | | | | ||
Financing activities | | | | | | | | | | | | | | | | | | | | | ||
Borrowings under revolver
|
| | | | 1.5 | | | | | | 7.5 | | | | | | — | | | | ||
Repayments of revolver
|
| | | | — | | | | | | (0.6) | | | | | | — | | | | ||
Funding to Parent, net
|
| | | | (25.7) | | | | | | (35.7) | | | | | | (41.1) | | | | ||
Net cash used in financing activities
|
| | | | (24.2) | | | | | | (28.8) | | | | | | (41.1) | | | | ||
Effect of exchange rate changes on cash and cash equivalents
|
| | | | (0.5) | | | | | | — | | | | | | (0.1) | | | | ||
Net change in cash and cash equivalents
|
| | | | 3.2 | | | | | | 3.0 | | | | | | (2.6) | | | | ||
Cash and cash equivalents, beginning of period
|
| | | | 7.2 | | | | | | 4.2 | | | | | | 6.8 | | | | ||
Cash and cash equivalents, end of period
|
| | | $ | 10.4 | | | | | $ | 7.2 | | | | | $ | 4.2 | | | | ||
Supplemental disclosure of cash paid | | | | | | | | | | | | | | | | | | | | | ||
Taxes paid, net of refunds
|
| | | $ | 4.5 | | | | | $ | 5.1 | | | | | $ | 4.8 | | | |
|
Land, building and building improvements
|
| |
10 – 40 years
|
|
|
Machinery and equipment
|
| |
3 – 20 years
|
|
|
Furniture and fixtures
|
| |
3 – 10 years
|
|
|
Vehicles
|
| |
3 – 10 years
|
|
|
Computers
|
| |
3 – 5 years
|
|
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Sweeteners
|
| | | $ | 165.9 | | | | | $ | 173.8 | | | | | $ | 168.1 | | |
Licorice products
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Merisant — North America
|
| | | $ | 60.0 | | | | | $ | 59.0 | | | | | $ | 57.6 | | |
Merisant — Europe, Middle East and Africa
|
| | | | 76.0 | | | | | | 82.0 | | | | | | 77.9 | | |
Merisant — Asia-Pacific
|
| | | | 17.8 | | | | | | 17.0 | | | | | | 15.4 | | |
Merisant — Latin America
|
| | | | 12.1 | | | | | | 15.8 | | | | | | 17.2 | | |
Mafco Worldwide
|
| | | | 106.3 | | | | | | 117.2 | | | | | | 119.9 | | |
Total Product revenues, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Raw materials and supplies
|
| | | $ | 89.6 | | | | | $ | 87.2 | | |
Work in process
|
| | | | 0.4 | | | | | | 0.5 | | |
Finished goods
|
| | | | 31.1 | | | | | | 35.8 | | |
| | | | $ | 121.1 | | | | | $ | 123.5 | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Machinery, equipment and other
|
| | | $ | 50.1 | | | | | $ | 48.1 | | |
Land, land rights, buildings and building improvements
|
| | | | 25.1 | | | | | | 24.1 | | |
Construction in progress
|
| | | | 0.6 | | | | | | 1.0 | | |
| | | | | 75.8 | | | | | | 73.2 | | |
Accumulated depreciation
|
| | | | (55.4) | | | | | | (53.5) | | |
| | | | $ | 20.4 | | | | | $ | 19.7 | | |
| | |
December 31
|
| |||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||||||||||||||||||||
| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||||||||
Indefinite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | | | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | |
Definite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 105.0 | | | | | $ | (38.8) | | | | | $ | 66.2 | | | | | $ | 105.0 | | | | | $ | (31.9) | | | | | $ | 73.1 | | |
Tradenames
|
| | | | 95.1 | | | | | | (19.9) | | | | | | 75.2 | | | | | | 95.1 | | | | | | (16.1) | | | | | | 79.0 | | |
| | | | $ | 310.0 | | | | | $ | (58.7) | | | | | $ | 251.3 | | | | | $ | 310.0 | | | | | $ | (48.0) | | | | | $ | 262.0 | | |
| | |
Net
Currency Translation Gains (Losses) |
| |
Funded
Status of Benefit Plans |
| |
Total
Accumulated Other Comprehensive Loss |
| |||||||||
Balance at December 31, 2016
|
| | | $ | (0.9) | | | | | $ | (12.5) | | | | | $ | (13.4) | | |
Foreign currency translation adjustments
|
| | | | 5.9 | | | | | | — | | | | | | 5.9 | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | 1.3 | | | | | | 1.3 | | |
Net current-period other comprehensive income
|
| | | | 5.9 | | | | | | 1.3 | | | | | | 7.2 | | |
Balance at December 31, 2017
|
| | | $ | 5.0 | | | | | $ | (11.2) | | | | | $ | (6.2) | | |
Foreign currency translation adjustments
|
| | | | (0.6) | | | | | | — | | | | | | (0.6) | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | 0.7 | | | | | | 0.7 | | |
Net current-period other comprehensive income
|
| | | | (0.6) | | | | | | 0.7 | | | | | | 0.1 | | |
Balance at December 31, 2018
|
| | | | 4.4 | | | | | | (10.5) | | | | | | (6.1) | | |
Foreign currency translation adjustments
|
| | | | (1.5) | | | | | | — | | | | | | (1.5) | | |
Net change in pension benefit obligation
|
| | | | — | | | | | | (0.5) | | | | | | (0.5) | | |
Net current-period other comprehensive income
|
| | | | (1.5) | | | | | | (0.5) | | | | | | (2.0) | | |
Balance at December 31, 2019
|
| | | $ | 2.9 | | | | | $ | (11.0) | | | | | $ | (8.1) | | |
Component
|
| |
Line Items Affected by Reclassifications
from Net Parent Investment in the Combined Statements of Operations |
| |
Expense Reclassified for the
Years Ended December 31, |
| |||||||||||||||
| | | | | |
2019
|
| |
2017
|
| |
2018
|
| |||||||||
Funded Status of
Benefit Plans |
| |
Cost of goods sold
|
| | | $ | (0.5) | | | | | $ | (0.4) | | | | | $ | (0.5) | | |
|
Selling, general and administrative expenses
|
| | | | (1.0) | | | | | | (0.6) | | | | | | (0.7) | | | ||
| | | | | | | $ | (1.5) | | | | | $ | (1.0) | | | | | $ | (1.2) | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Accumulated benefit obligation
|
| | | $ | 28.8 | | | | | $ | 24.0 | | |
Changes in projected benefit obligation: | | | | | | | | | | | | | |
Projected benefit obligation at beginning of year
|
| | | $ | 26.1 | | | | | $ | 28.0 | | |
Service cost
|
| | | | 0.6 | | | | | | 0.8 | | |
Interest cost
|
| | | | 1.1 | | | | | | 1.0 | | |
Liability gain due to curtailment
|
| | | | (2.5) | | | | | | — | | |
Actuarial loss (gain)
|
| | | | 4.2 | | | | | | (2.0) | | |
Benefits paid
|
| | | | (0.7) | | | | | | (1.7) | | |
Projected benefit obligation at end of year
|
| | | | 28.8 | | | | | | 26.1 | | |
Change in plan assets: | | | | | | | | | | | | | |
Fair value of assets at beginning of year
|
| | | | 25.8 | | | | | | 29.4 | | |
Actual returns on plan assets
|
| | | | 5.1 | | | | | | (1.9) | | |
Benefits paid
|
| | | | (0.7) | | | | | | (1.7) | | |
Fair value of assets at end of year
|
| | | | 30.2 | | | | | | 25.8 | | |
Net pension asset (liability)
|
| | | $ | 1.4 | | | | | $ | (0.3) | | |
| | |
December 31
2019 |
| |||
Prior service cost
|
| | | $ | — | | |
Net actuarial loss
|
| | | | 9.3 | | |
| | | | $ | 9.3 | | |
|
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net actuarial (gain) loss
|
| | | $ | (1.9) | | | | | $ | 1.4 | | | | | $ | (0.3) | | |
Prior service credit
|
| | | | (0.3) | | | | | | — | | | | | | 0.1 | | |
Amortization of prior service costs
|
| | | | (0.1) | | | | | | (0.1) | | | | | | (0.1) | | |
Amortization of actuarial loss
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.2) | | |
Total (gain) loss recognized in other comprehensive income
|
| | | $ | (3.4) | | | | | $ | 0.3 | | | | | $ | (1.5) | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Service cost
|
| | | $ | (0.6) | | | | | $ | (0.8) | | | | | $ | (0.8) | | |
Interest cost
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.0) | | |
Expected return on plan assets
|
| | | | 1.5 | | | | | | 1.5 | | | | | | 1.5 | | |
Amortization of prior service costs
|
| | | | (0.1) | | | | | | (0.1) | | | | | | (0.1) | | |
Settlement/Curtailment expense
|
| | | | (0.3) | | | | | | — | | | | | | — | | |
Amortization of net actuarial loss
|
| | | | (1.1) | | | | | | (1.0) | | | | | | (1.2) | | |
Net periodic pension expense
|
| | | $ | (1.7) | | | | | $ | (1.4) | | | | | $ | (1.6) | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net periodic benefit cost: | | | | | | | | | | | | | | | | | | | |
Cost of Goods Sold
|
| | | $ | 0.4 | | | | | $ | 0.5 | | | | | $ | 0.6 | | |
Selling, general and administrative expense
|
| | | | 1.3 | | | | | | 0.9 | | | | | | 1.0 | | |
Total net periodic benefit cost
|
| | | $ | 1.7 | | | | | $ | 1.4 | | | | | $ | 1.6 | | |
|
2020
|
| | | $ | 0.8 | | |
|
2021
|
| | | | 0.9 | | |
|
2022
|
| | | | 1.3 | | |
|
2023
|
| | | | 1.2 | | |
|
2024
|
| | | | 1.4 | | |
|
2025 – 2029
|
| | | | 7.2 | | |
| | |
December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | | | | | 3.75% | | |
Rate of compensation increase
|
| | | | — | | | | | | 3.50% | | | | | | 3.50% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.25% | | | | | | 3.75% | | | | | | 4.25% | | |
Expected long-term rate of return on plan assets
|
| | | | 5.75% | | | | | | 5.25% | | | | | | 5.75% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
| | |
December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Weighted-average assumptions used to determine benefit obligation at year end:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | | | | | 3.50% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
Weighted-average assumptions used to determine net periodic benefit cost:
|
| | | | | | | | | | | | | | | | | | |
Discount rate
|
| | | | 4.25% | | | | | | 3.50% | | | | | | 4.00% | | |
Rate of compensation increase
|
| | | | 3.50% | | | | | | 3.50% | | | | | | 3.50% | | |
| | |
Target Ranges
|
|
Asset classes: | | | | |
Cash equivalents and other
|
| |
0% – 17%
|
|
Fixed income securities
|
| |
45% – 100%
|
|
Equity securities
|
| |
0% – 28%
|
|
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 0.4 | | | | | $ | 0.4 | | | | | $ | — | | | | | $ | — | | |
Mutual funds
|
| | | | 5.5 | | | | | | 5.0 | | | | | | 0.5 | | | | | | — | | |
U.S. Government securities
|
| | | | 2.7 | | | | | | — | | | | | | 2.7 | | | | | | — | | |
Municipal/provincial bonds
|
| | | | 0.3 | | | | | | — | | | | | | 0.3 | | | | | | — | | |
Corporate bonds
|
| | | | 12.5 | | | | | | — | | | | | | 12.5 | | | | | | — | | |
Total investments
|
| | | $ | 21.4 | | | | | $ | 5.4 | | | | | $ | 16.0 | | | | | $ | — | | |
| | |
Total
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 0.4 | | | | | $ | 0.4 | | | | | $ | — | | | | | $ | — | | |
Mutual funds
|
| | | | 5.6 | | | | | | 5.6 | | | | | | — | | | | | | — | | |
U.S. Government securities
|
| | | | 2.5 | | | | | | — | | | | | | 2.5 | | | | | | — | | |
Municipal/provincial bonds
|
| | | | 0.3 | | | | | | — | | | | | | 0.3 | | | | | | — | | |
Corporate bonds
|
| | | | 11.0 | | | | | | — | | | | | | 11.0 | | | | | | — | | |
Total investments
|
| | | $ | 19.8 | | | | | $ | 6.0 | | | | | $ | 13.8 | | | | | $ | — | | |
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Income (loss) before income taxes: | | | | | | | | | | | | | | | | | | | |
Domestic
|
| | | $ | 10.9 | | | | | $ | (6.0) | | | | | | (9.8) | | |
Foreign
|
| | | | 17.5 | | | | | | 32.2 | | | | | | 24.7 | | |
Total income before income taxes
|
| | | $ | 28.4 | | | | | $ | 26.2 | | | | | | 14.9 | | |
|
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
(Benefit) provision for income taxes: | | | | | | | | | | | | | | | | | | | |
Current:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 1.9 | | | | | $ | 4.8 | | | | | | 0.1 | | |
State and local
|
| | | | 0.2 | | | | | | 0.1 | | | | | | 0.1 | | |
Foreign
|
| | | | 5.9 | | | | | | 6.4 | | | | | | 4.4 | | |
| | | | | 8.0 | | | | | | 11.3 | | | | | | 4.6 | | |
Deferred:
|
| | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (1.8) | | | | | | (5.1) | | | | | | (15.4) | | |
State and local
|
| | | | 0.3 | | | | | | (1.0) | | | | | | (0.6) | | |
Foreign
|
| | | | (9.0) | | | | | | 0.1 | | | | | | 1.2 | | |
| | | | | (10.5) | | | | | | (6.0) | | | | | | (14.8) | | |
Total (benefit) provision for income taxes
|
| | | $ | (2.5) | | | | | $ | 5.3 | | | | | | (10.2) | | |
|
| | |
Years Ended December 31
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Tax provision at federal statutory rate
|
| | | $ | 5.9 | | | | | $ | 5.5 | | | | | | 5.2 | | |
State and local taxes
|
| | | | 0.4 | | | | | | (0.9) | | | | | | (0.2) | | |
Foreign rate differential
|
| | | | 0.7 | | | | | | 1.5 | | | | | | (3.2) | | |
Change in tax rates
|
| | | | (2.2) | | | | | | (0.1) | | | | | | (3.0) | | |
Changes in uncertain tax positions
|
| | | | 0.1 | | | | | | (0.1) | | | | | | (0.8) | | |
Change in valuation allowance
|
| | | | 0.6 | | | | | | (2.0) | | | | | | 0.2 | | |
Impact of U.S. tax reform
|
| | | | — | | | | | | — | | | | | | (8.8) | | |
Impact of Luxembourg restructuring
|
| | | | (6.4) | | | | | | — | | | | | | — | | |
U.S. effects of international operations
|
| | | | 3.1 | | | | | | 6.1 | | | | | | 3.6 | | |
Tax credits
|
| | | | (5.2) | | | | | | (5.5) | | | | | | (4.9) | | |
Other
|
| | | | 0.5 | | | | | | 0.8 | | | | | | 1.7 | | |
Total (benefit) provision for income taxes
|
| | | $ | (2.5) | | | | | $ | 5.3 | | | | | | (10.2) | | |
| | |
December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Accounts receivable
|
| | | $ | 0.7 | | | | | $ | 0.3 | | |
Accrued expenses
|
| | | | 2.1 | | | | | | 1.6 | | |
Inventory
|
| | | | 4.1 | | | | | | 2.0 | | |
Other assets
|
| | | | 1.0 | | | | | | 1.4 | | |
Deferred rent
|
| | | | 0.4 | | | | | | 0.5 | | |
Pension asset
|
| | | | 1.8 | | | | | | 1.9 | | |
Property, plant and equipment
|
| | | | 0.9 | | | | | | 1.1 | | |
U.S. and foreign net operating losses
|
| | | | 15.0 | | | | | | 15.6 | | |
Tax credits
|
| | | | 2.3 | | | | | | 3.3 | | |
Total deferred tax assets
|
| | | | 28.3 | | | | | | 27.7 | | |
Less valuation allowance
|
| | | | (12.4) | | | | | | (11.9) | | |
Net deferred tax assets
|
| | | $ | 15.9 | | | | | $ | 15.8 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets
|
| | | | (38.5) | | | | | | (49.2) | | |
Unremitted earnings
|
| | | | (1.2) | | | | | | (1.3) | | |
Other liabilities
|
| | | | (6.4) | | | | | | (5.8) | | |
Total deferred tax liabilities
|
| | | | (46.1) | | | | | | (56.3) | | |
Net deferred tax liability
|
| | | $ | (30.2) | | | | | $ | (40.5) | | |
| | |
Year Ended December 31
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Balance as of January 1
|
| | | $ | 0.9 | | | | | $ | 1.5 | | |
Additions based on tax positions taken in the current year
|
| | | | — | | | | | | 0.1 | | |
Additions based on tax positions taken in prior years
|
| | | | — | | | | | | — | | |
Decreases based on tax positions taken in prior years
|
| | | | — | | | | | | (0.2) | | |
Settlements
|
| | | | (0.1) | | | | | | (0.2) | | |
Currency differences
|
| | | | 0.1 | | | | | | (0.3) | | |
Balance as of December 31
|
| | | $ | 0.9 | | | | | $ | 0.9 | | |
|
2020
|
| | | $ | 3.2 | | |
|
2021
|
| | | | 2.8 | | |
|
2022
|
| | | | 2.6 | | |
|
2023
|
| | | | 2.4 | | |
|
2024
|
| | | | 1.0 | | |
|
Thereafter
|
| | | | 2.2 | | |
|
Less: sublease rental income
|
| | | | (3.7) | | |
| | | | | $ | 10.5 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Product revenues, net | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | $ | 106.3 | | | | | $ | 117.2 | | | | | $ | 119.9 | | |
Merisant
|
| | | | 165.9 | | | | | | 173.8 | | | | | | 168.1 | | |
Total Product revenues, net
|
| | | | 272.2 | | | | | | 291.0 | | | | | | 288.0 | | |
Income (loss) before income taxes | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 19.5 | | | | | | 19.8 | | | | | | 22.4 | | |
Merisant
|
| | | | 8.9 | | | | | | 6.4 | | | | | | (7.5) | | |
Total Income before income taxes
|
| | | | 28.4 | | | | | | 26.2 | | | | | | 14.9 | | |
Depreciation expense | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 1.6 | | | | | | 1.7 | | | | | | 1.3 | | |
Merisant
|
| | | | 1.4 | | | | | | 1.9 | | | | | | 2.1 | | |
Total Depreciation expense
|
| | | | 3.0 | | | | | | 3.6 | | | | | | 3.4 | | |
Property, plant and equipment, net | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 15.2 | | | | | | 13.9 | | | | | | 13.4 | | |
Merisant
|
| | | | 5.2 | | | | | | 5.8 | | | | | | 7.2 | | |
Total Property, plant and equipment, net
|
| | | | 20.4 | | | | | | 19.7 | | | | | | 20.6 | | |
Capital Expenditures | | | | | | | | | | | | | | | | | | | |
Mafco Worldwide
|
| | | | 3.1 | | | | | | 2.5 | | | | | | 1.6 | | |
Merisant
|
| | | | 1.0 | | | | | | 1.6 | | | | | | 1.5 | | |
Total Capital expenditures
|
| | | | 4.1 | | | | | | 4.1 | | | | | | 3.1 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Geographic Information: | | | | | | | | | | | | | | | | | | | |
North America
|
| | | $ | 104.9 | | | | | $ | 104.0 | | | | | $ | 104.0 | | |
Europe, Middle East and Africa
|
| | | | 105.6 | | | | | | 119.3 | | | | | | 117.4 | | |
Asia-Pacific
|
| | | | 47.7 | | | | | | 48.8 | | | | | | 45.8 | | |
Latin America
|
| | | | 14.0 | | | | | | 18.9 | | | | | | 20.8 | | |
Total Product Revenue, net
|
| | | $ | 272.2 | | | | | $ | 291.0 | | | | | $ | 288.0 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Long-Lived Assets* | | | | | | | | | | | | | | | | | | | |
United States
|
| | | $ | 7.8 | | | | | $ | 6.9 | | | | | $ | 7.5 | | |
China
|
| | | | 5.3 | | | | | | 5.2 | | | | | | 5.2 | | |
Czech Republic
|
| | | | 3.3 | | | | | | 3.6 | | | | | | 3.6 | | |
France
|
| | | | 3.1 | | | | | | 2.9 | | | | | | 3.0 | | |
Other Foreign Countries
|
| | | | 1.0 | | | | | | 1.1 | | | | | | 1.3 | | |
Total
|
| | | $ | 20.5 | | | | | $ | 19.7 | | | | | $ | 20.6 | | |
| ASSETS | | | | | | | |
| Current assets | | | | | | | |
|
Cash
|
| | | $ | 1,005,831 | | |
|
Prepaid expenses
|
| | | | 65,714 | | |
|
Total Current Assets
|
| | | | 1,071,545 | | |
|
Security deposit
|
| | | | 38,000 | | |
|
Marketable securities held in Trust Account
|
| | | | 304,283,025 | | |
|
Total Assets
|
| | | $ | 305,392,570 | | |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | |
|
Current liabilities – Accrued expenses
|
| | | $ | 19,781 | | |
|
Total Current Liabilities
|
| | | | 19,781 | | |
|
Deferred underwriting fees payable
|
| | | | 11,280,000 | | |
|
Total Liabilities
|
| | | | 11,299,781 | | |
|
Commitments (Note 6)
|
| | | | | | |
|
Ordinary shares subject to possible redemption, 28,502,357 shares at redemption value
|
| | | | 289,092,780 | | |
|
Shareholders’ Equity
|
| | | | | | |
|
Preference shares, $0.0001 par value; 2,000,000 shares authorized, none issued and outstanding
|
| | | | — | | |
|
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 1,497,643 shares issued and outstanding (excluding 28,502,357 shares subject to possible redemption)
|
| | | | 150 | | |
|
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,500,000 shares issued and outstanding
|
| | | | 750 | | |
|
Additional paid in capital
|
| | | | 1,066,965 | | |
|
Retained earnings
|
| | | | 3,932,144 | | |
|
Total Shareholders’ Equity
|
| | | | 5,000,009 | | |
|
Total Liabilities and Shareholders’ Equity
|
| | | $ | 305,392,570 | | |
|
Operating costs
|
| | | $ | 350,881 | | |
|
Loss from operations
|
| | | | (350,881) | | |
| Other income: | | | | | | | |
|
Interest income
|
| | | | 4,254,861 | | |
|
Unrealized gain on marketable securities held in Trust Account
|
| | | | 28,164 | | |
|
Other income
|
| | | | 4,283,025 | | |
|
Net Income
|
| | | $ | 3,932,144 | | |
|
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 8,410,915 | | |
|
Basic and diluted net loss per ordinary share(2)
|
| | | $ | (0.02) | | |
| | |
Class A Ordinary Shares
|
| |
Class B Ordinary Shares
|
| |
Additional
Paid in Capital |
| |
Retained
Earnings |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | — | | | | | | 7,503,750 | | | | | | 750 | | | | | | 24,250 | | | | | | — | | | | | | 25,000 | | |
Sale of 30,000,000 Units, net of underwriting discounts and offering expenses
|
| | | | 30,000,000 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | 283,382,645 | | | | | | — | | | | | | 283,385,645 | | |
Sale of 6,750,000 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,750,000 | | | | | | — | | | | | | 6,750,000 | | |
Forfeiture of Founder Shares
|
| | | | — | | | | | | — | | | | | | (3,750) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ordinary shares subject to possible redemption
|
| | | | (28,502,357) | | | | | | (2,850) | | | | | | — | | | | | | — | | | | | | (289,089,930) | | | | | | — | | | | | | (289,092,780) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,932,144 | | | | | | 3,932,144 | | |
Balance – December 31, 2019
|
| | | | 1,497,643 | | | | | $ | 150 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 1,066,965 | | | | | $ | 3,932,144 | | | | | $ | 5,000,009 | | |
|
| Cash Flows from Operating Activities: | | | | | | | |
|
Net income
|
| | | $ | 3,932,144 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Interest earned on marketable securities held in Trust Account
|
| | | | (4,254,861) | | |
|
Unrealized gain on marketable securities held in Trust Account
|
| | | | (28,164) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid expenses
|
| | | | (65,714) | | |
|
Accrued expenses
|
| | | | 19,781 | | |
|
Net cash used in operating activities
|
| | | | (396,814) | | |
| Cash Flows from Investing Activities: | | | | | | | |
|
Security deposits
|
| | | | (38,000) | | |
|
Investment of cash in Trust Account
|
| | | | (300,000,000) | | |
|
Net cash used in investing activities
|
| | | | (300,038,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 294,780,000 | | |
|
Proceeds from sale of Private Placement Warrants
|
| | | | 6,750,000 | | |
|
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from promissory note – related party
|
| | | | 274,178 | | |
|
Repayment of promissory note – related party
|
| | | | (274,178) | | |
|
Payment of offering costs
|
| | | | (114,355) | | |
|
Net cash provided by financing activities
|
| | | | 301,440,645 | | |
|
Net Change in Cash
|
| | | | 1,005,831 | | |
|
Cash – Beginning
|
| | | | — | | |
| Cash – Ending | | | | $ | 1,005,831 | | |
| Non-Cash Investing and Financing Activities: | | | | | | | |
|
Initial classification of ordinary shares subject to possible redemption
|
| | | $ | 285,145,870 | | |
|
Change in value of ordinary shares subject to possible redemption
|
| | | $ | 3,946,910 | | |
|
Deferred underwriting fees
|
| | | $ | 11,280,000 | | |
| | |
Year Ended
December 31, 2019 |
| |||
Net income
|
| | | $ | 3,932,144 | | |
Less: Income attributable to ordinary shares subject to possible redemption
|
| | | | (4,069,302) | | |
Adjusted net loss
|
| | | $ | (137,158) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 8,410,915 | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.02) | | |
Description
|
| |
Level
|
| |
December 31,
2019 |
| ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 304,283,025 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 583,196 | | | | | $ | 1,005,831 | | |
Prepaid expenses
|
| | | | 103,668 | | | | | | 65,714 | | |
Total Current Assets
|
| | | | 686,864 | | | | | | 1,071,545 | | |
Security deposit
|
| | | | 38,000 | | | | | | 38,000 | | |
Right of use asset
|
| | | | 266,640 | | | | | | — | | |
Marketable securities held in Trust Account
|
| | | | 305,037,224 | | | | | | 304,283,025 | | |
Total Assets
|
| | | $ | 306,028,728 | | | | | $ | 305,392,570 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 195,161 | | | | | $ | 19,781 | | |
Operating lease liability
|
| | | | 217,013 | | | | | | — | | |
Total Current Liabilities
|
| | | | 412,174 | | | | | | 19,781 | | |
Operating lease liability, net of current portion
|
| | | | 64,505 | | | | | | — | | |
Deferred underwriting fees payable
|
| | | | 11,280,000 | | | | | | 11,280,000 | | |
Total Liabilities
|
| | | | 11,756,679 | | | | | | 11,299,781 | | |
Commitments (Note 7) | | | | | | | | | | | | | |
Ordinary shares subject to possible redemption, 28,449,516 and 28,502,357
shares at redemption value as of March 31, 2020 and December 31, 2019, respectively |
| | | | 289,272,046 | | | | | | 289,092,780 | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Preference shares, $0.0001 par value; 2,000,000 shares authorized, none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 1,550,484 and 1,497,643 shares issued and outstanding (excluding 28,449,516 and 28,502,357 shares subject to possible redemption) as of March 31, 2020 and December 31, 2019,
respectively |
| | | | 155 | | | | | | 150 | | |
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized;
7,500,000 shares issued and outstanding as of March 31, 2020 and December 31, 2019 |
| | | | 750 | | | | | | 750 | | |
Additional paid in capital
|
| | | | 887,694 | | | | | | 1,066,965 | | |
Retained earnings
|
| | | | 4,111,404 | | | | | | 3,932,144 | | |
Total Shareholders’ Equity
|
| | | | 5,000,003 | | | | | | 5,000,009 | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | 306,028,728 | | | | | $ | 305,392,570 | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating costs
|
| | | $ | 574,939 | | | | | $ | 15,517 | | |
Loss from operations
|
| | | | (574,939) | | | | | | (15,517) | | |
Other income: | | | | | | | | | | | | | |
Interest income
|
| | | | 754,199 | | | | | | — | | |
Net Income (Loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 8,997,643 | | | | | | 6,525,000 | | |
Basic and diluted net loss per ordinary share(2)
|
| | | $ | (0.06) | | | | | $ | (0.00) | | |
| | |
Class A
Ordinary Shares |
| |
Class B
Ordinary Shares |
| |
Additional
Paid in Capital |
| |
Retained
Earnings |
| |
Total
Shareholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | 1,497,643 | | | | | $ | 150 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 1,066,965 | | | | | $ | 3,932,144 | | | | | $ | 5,000,009 | | |
Change in value of ordinary shares
subject to possible redemption |
| | | | 52,841 | | | | | | 5 | | | | | | — | | | | | | — | | | | | | (179,271) | | | | | | — | | | | | | (179,266) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 179,260 | | | | | | 179,260 | | |
Balance – March 31, 2020
|
| | | | 1,550,484 | | | | | $ | 155 | | | | | | 7,500,000 | | | | | $ | 750 | | | | | $ | 887,694 | | | | | $ | 4,111,404 | | | | | $ | 5,000,003 | | |
| | |
Ordinary Shares
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholder’s Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – January 1, 2019
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor(1)
|
| | | | 7,503,750 | | | | | | 750 | | | | | | 24,250 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (15,517) | | | | | | (15,517) | | |
Balance – March 31, 2019
|
| | | | 7,503,750 | | | | | $ | 750 | | | | | $ | 24,250 | | | | | $ | (15,517) | | | | | $ | 9,483 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (754,199) | | | | | | — | | |
Amortization of right of use asset
|
| | | | 33,878 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (56,954) | | | | | | — | | |
Accrued expenses
|
| | | | 175,380 | | | | | | — | | |
Net cash used in operating activities
|
| | | | (422,635) | | | | | | (15,517) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from promissory note – related party
|
| | | | — | | | | | | 150,803 | | |
Payment of offering costs
|
| | | | — | | | | | | (127,277) | | |
Net cash provided by financing activities
|
| | | | — | | | | |
|
48,526
|
| |
Net Change in Cash
|
| | | | (422,635) | | | | | | 33,009 | | |
Cash – Beginning
|
| | | | 1,005,831 | | | | | | — | | |
Cash – Ending | | | | $ | 583,196 | | | | | $ | 33,009 | | |
Non-Cash Investing and Financing Activities: | | | | | | | | | | | | | |
Change in value of ordinary shares subject to possible redemption
|
| | | $ | 179,266 | | | | | $ | — | | |
Right of use asset acquired through lease liability
|
| | | $ | 297,723 | | | | | $ | — | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income (loss)
|
| | | $ | 179,260 | | | | | $ | (15,517) | | |
Less: Income attributable to ordinary shares subject to possible redemption
|
| | | | (715,207) | | | | | | — | | |
Adjusted net loss
|
| | | $ | (535,947) | | | | | $ | (15,517) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 8,997,643 | | | | | | 6,525,000 | | |
Basic and diluted net loss per ordinary share
|
| | | $ | (0.06) | | | | | $ | (0.00) | | |
|
Operating lease cost
|
| | | $ | 33,878 | | |
|
Total Rent Expense
|
| | | $ | 33,878 | | |
Year ending December 31,
|
| | | | | | |
2020 (remaining)
|
| | | $ | 171,000 | | |
2021
|
| | | | 122,234 | | |
Total future minimum lease payments
|
| | | $ | 293,234 | | |
Less: imputed interest
|
| | | | (11,716) | | |
Present value of operating lease liabilities
|
| | | $ | 281,518 | | |
|
Other Information
|
| | | |
Weighted-average remaining lease term for operating leases
|
| |
15.5 months
|
|
Weighted-average discount rate for operating leases
|
| |
6.0%
|
|
Year ending December 31,
|
| | | | | | |
2020 (remaining)
|
| | | $ | 40,000 | | |
2021
|
| | | | 32,500 | | |
Total future minimum lease receivables
|
| | | $ | 72,500 | | |
Description
|
| |
Level
|
| |
March 31,
2020 |
| |
December 31,
2019 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 305,037,224 | | | | | $ | 304,283,025 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 10.5 | | | | | $ | 10.4 | | |
Accounts receivable (net of allowances of $1.9 and $2.8, respectively)
|
| | | | 53.1 | | | | | | 55.0 | | |
Inventories
|
| | | | 116.4 | | | | | | 121.1 | | |
Prepaid expenses and other current assets
|
| | | | 6.8 | | | | | | 7.3 | | |
Total current assets
|
| | | | 186.8 | | | | | | 193.8 | | |
Property, plant and equipment, net
|
| | | | 20.2 | | | | | | 20.4 | | |
Goodwill
|
| | | | 113.1 | | | | | | 130.8 | | |
Other intangible assets, net
|
| | | | 225.9 | | | | | | 251.3 | | |
Other assets
|
| | | | 3.7 | | | | | | 3.5 | | |
Total assets
|
| | | $ | 549.7 | | | | | $ | 599.8 | | |
Liabilities and net parent investment | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 27.2 | | | | | $ | 26.3 | | |
Accrued expenses and other current liabilities
|
| | | | 21.6 | | | | | | 28.1 | | |
Total current liabilities
|
| | | | 48.8 | | | | | | 54.4 | | |
Due to related party
|
| | | | 6.9 | | | | | | 8.4 | | |
Deferred tax liabilities, net
|
| | | | 30.9 | | | | | | 31.5 | | |
Other liabilities
|
| | | | 18.1 | | | | | | 17.8 | | |
Net parent investment
|
| | | | 445.0 | | | | | | 487.7 | | |
Total liabilities and net parent investment
|
| | | $ | 549.7 | | | | | $ | 599.8 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Cost of goods sold
|
| | | | 39.9 | | | | | | 40.3 | | |
Gross profit
|
| | | | 26.1 | | | | | | 30.0 | | |
Selling, general and administrative expenses
|
| | | | 15.9 | | | | | | 15.7 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | - | | |
Restructuring and other non-recurring expenses
|
| | | | 0.4 | | | | | | 1.4 | | |
Operating (loss) income
|
| | | | (33.3) | | | | | | 10.2 | | |
Other (income), net
|
| | | | (1.7) | | | | | | (1.6) | | |
(Loss) income before income taxes
|
| | | | (31.6) | | | | | | 11.8 | | |
(Benefit) provision for income taxes
|
| | | | (3.1) | | | | | | 2.6 | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (1.8) | | | | | | (2.4) | | |
Total other comprehensive loss, net of tax
|
| | | | (1.8) | | | | | | (2.4) | | |
Comprehensive (loss) income
|
| | | $ | (30.3) | | | | | $ | 6.8 | | |
| | |
Net Parent
Investment |
| |||
Balance, January 1, 2019
|
| | | $ | 484.5 | | |
Funding to Parent, net
|
| | | | (12.2) | | |
Net income
|
| | | | 9.2 | | |
Other comprehensive loss, net of tax
|
| | | | (2.4) | | |
Balance, March 31, 2019
|
| | | $ | 479.1 | | |
|
| | |
Net Parent
Investment |
| |||
Balance, January 1, 2020
|
| | | $ | 487.7 | | |
Funding to Parent, net
|
| | | | (12.4) | | |
Net loss
|
| | | | (28.5) | | |
Other comprehensive loss, net of tax
|
| | | | (1.8) | | |
Balance, March 31, 2020
|
| | | $ | 445.0 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating activities | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (28.5) | | | | | $ | 9.2 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 0.7 | | | | | | 0.8 | | |
Amortization of intangible assets
|
| | | | 2.5 | | | | | | 2.7 | | |
Deferred income taxes
|
| | | | (0.6) | | | | | | 0.4 | | |
Asset impairment charges
|
| | | | 40.6 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 0.3 | | | | | | (6.6) | | |
Inventories
|
| | | | 4.0 | | | | | | 1.7 | | |
Pension
|
| | | | — | | | | | | 0.2 | | |
Prepaid expenses and other current assets
|
| | | | (1.0) | | | | | | 0.2 | | |
Accounts payable, accrued liabilities and income taxes
|
| | | | (4.5) | | | | | | 3.0 | | |
Other, net
|
| | | | 1.1 | | | | | | (1.1) | | |
Net cash provided by operating activities
|
| | | | 14.6 | | | | | | 10.5 | | |
Investing activities | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (0.9) | | | | | | (0.4) | | |
Net cash used in investing activities
|
| | | | (0.9) | | | | | | (0.4) | | |
Financing activities | | | | | | | | | | | | | |
Borrowings under revolver
|
| | | | 3.5 | | | | | | — | | |
Repayments of revolver
|
| | | | (5.0) | | | | | | — | | |
Funding to Parent, net
|
| | | | (12.4) | | | | | | (12.2) | | |
Net cash used in financing activities
|
| | | | (13.9) | | | | | | (12.2) | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 0.3 | | | | | | 0.1 | | |
Net change in cash and cash equivalents
|
| | | | 0.1 | | | | | | (2.0) | | |
Cash and cash equivalents, beginning of period
|
| | | | 10.4 | | | | | | 7.2 | | |
Cash and cash equivalents, end of period
|
| | | $ | 10.5 | | | | | $ | 5.2 | | |
Supplemental disclosure of cash paid | | | | | | | | | | | | | |
Taxes paid, net of refunds
|
| | | $ | 1.1 | | | | | $ | 1.3 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Raw materials and supplies
|
| | | $ | 84.0 | | | | | $ | 89.6 | | |
Work in process
|
| | | | 0.5 | | | | | | 0.4 | | |
Finished goods
|
| | | | 31.9 | | | | | | 31.1 | | |
| | | | $ | 116.4 | | | | | $ | 121.1 | | |
| | |
March 31,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(Unaudited)
|
| |||||||||
Machinery, equipment and other
|
| | | $ | 48.3 | | | | | $ | 50.1 | | |
Land, land rights, buildings and building improvements
|
| | | | 26.8 | | | | | | 25.1 | | |
Construction in progress
|
| | | | 0.3 | | | | | | 0.6 | | |
| | | | | 75.4 | | | | | | 75.8 | | |
Accumulated depreciation
|
| | | | (55.2) | | | | | | (55.4) | | |
| | | | $ | 20.2 | | | | | $ | 20.4 | | |
| | |
March 31, 2020
(Unaudited) |
| |
December 31, 2019
|
| ||||||||||||||||||||||||||||||
| | |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| |
Gross
|
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||||||||
Indefinite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product formulations
|
| | | $ | 87.0 | | | | | $ | — | | | | | $ | 87.0 | | | | | $ | 109.9 | | | | | $ | — | | | | | $ | 109.9 | | |
Definite-lived: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer relationships
|
| | | $ | 105.0 | | | | | $ | (40.3) | | | | | $ | 64.7 | | | | | $ | 105.0 | | | | | $ | (38.8) | | | | | $ | 66.2 | | |
Tradenames
|
| | | | 95.1 | | | | | | (20.9) | | | | | | 74.2 | | | | | | 95.1 | | | | | | (19.9) | | | | | | 75.2 | | |
| | | | $ | 287.1 | | | | | $ | (61.2) | | | | | $ | 225.9 | | | | | $ | 310.0 | | | | | $ | (58.7) | | | | | $ | 251.3 | | |
| | |
Net Currency
Translation Gains (Losses) |
| |
Funded
Status of Benefit Plans |
| |
Total
Accumulated Other Comprehensive Loss |
| |||||||||
Balance at December 31, 2018
|
| | | $ | 4.4 | | | | | $ | (10.5) | | | | | $ | (6.1) | | |
Foreign currency translation Adjustments
|
| | | | (2.4) | | | | | | — | | | | | | (2.4) | | |
Adoption of ASU 2018-02
|
| | | | — | | | | | | (2.1) | | | | | | (2.1) | | |
Balance at March 31, 2019
|
| | | $ | 2.0 | | | | | $ | (12.6) | | | | | $ | (10.6) | | |
Balance at December 31, 2019
|
| | | $ | 2.9 | | | | | $ | (11.0) | | | | | $ | (8.1) | | |
Foreign currency translation Adjustments
|
| | | | (1.8) | | | | | | — | | | | | | (1.8) | | |
Balance at March 31, 2020
|
| | | $ | 1.1 | | | | | $ | (11.0) | | | | | $ | (9.9) | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net periodic benefit cost: | | | | | | | | | | | | | |
Service cost
|
| | | $ | — | | | | | $ | 0.2 | | |
Interest cost
|
| | | | 0.3 | | | | | | 0.3 | | |
Expected return on plan assets
|
| | | | (0.4) | | | | | | (0.4) | | |
Amortization of unrecognized actuarial loss
|
| | | | 0.1 | | | | | | 0.3 | | |
Total net periodic benefit cost
|
| | | $ | — | | | | | $ | 0.4 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Net periodic benefit cost: | | | | | | | | | | | | | |
Cost of Goods Sold
|
| | | $ | — | | | | | $ | 0.2 | | |
Selling, general and administrative expense
|
| | | | — | | | | | | 0.2 | | |
Total net periodic benefit cost
|
| | | $ | — | | | | | $ | 0.4 | | |
|
2020
|
| | | $ | 2.5 | | |
|
2021
|
| | | | 2.8 | | |
|
2022
|
| | | | 2.6 | | |
|
2023
|
| | | | 2.3 | | |
|
2024
|
| | | | 1.0 | | |
|
Thereafter
|
| | | | 2.2 | | |
|
Less: sublease rental income
|
| | | | (3.4) | | |
| | | | | $ | 10.0 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Product revenues, net | | | | ||||||||||
Mafco Worldwide
|
| | | $ | 25.8 | | | | | $ | 28.8 | | |
Merisant
|
| | | | 40.2 | | | | | | 41.5 | | |
Total Product revenues, net
|
| | | $ | 66.0 | | | | | $ | 70.3 | | |
Income (loss) before income taxes | | | | ||||||||||
Mafco Worldwide
|
| | | $ | (23.9) | | | | | $ | 6.2 | | |
Meriant
|
| | | | (7.7) | | | | | | 5.6 | | |
Total Income before income taxes
|
| | | $ | (31.6) | | | | | $ | 11.8 | | |
|
Securities and Exchange Commission registration fee
|
| | | $ | 31,028.62 | | |
|
Accounting fees and expenses
|
| | | $ | 75,000 | | |
|
Legal fees and expenses
|
| | | $ | 250,000 | | |
|
Financial printing and miscellaneous expenses
|
| | | $ | 15,000 | | |
|
Total
|
| | | $ | 371,028.62 | | |
| | | | WHOLE EARTH BRANDS, INC. | | |||
| | | | By: | | | /s/ Andrew Rusie | |
| | | | Name: | | | Andrew Rusie | |
| | | | Title: | | | Chief Financial Officer | |
|
SIGNATURE
|
| |
TITLE
|
| |
DATE
|
|
|
/s/ Albert Manzone
Albert Manzone
|
| |
Chief Executive Officer
(Principal Executive Officer) |
| |
July 24, 2020
|
|
|
/s/ Andrew Rusie
Andrew Rusie
|
| |
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer) |
| |
July 24, 2020
|
|
|
/s/ Irwin D. Simon
Irwin D. Simon
|
| | Executive Chairman | | |
July 24, 2020
|
|
|
/s/ Anuraag Agarwal
Anuraag Agarwal
|
| | Director | | |
July 24, 2020
|
|
|
/s/ Steven M. Cohen
Steven M. Cohen
|
| | Director | | |
July 24, 2020
|
|
|
/s/ Denise Faltischek
Denise Faltischek
|
| | Director | | |
July 24, 2020
|
|
|
/s/ Ira J. Lamel
Ira J. Lamel
|
| | Director | | |
July 24, 2020
|
|
|
/s/ John M. McMillin
John M. McMillin
|
| | Director | | |
July 24, 2020
|
|
Exhibit 5.1
|
DLA Piper LLP (US) 1251 Avenue of the Americas 27th Floor New York, New York 10020-1104 www.dlapiper.com |
July 24, 2020
Whole Earth Brands, Inc.
125 S. Wacker Drive
Suite 3150
Chicago, Illinois
Re: | Whole Earth Brands, Inc. - Registration Statement on Form S-1 |
Ladies and Gentlemen:
We are issuing this opinion in our capacity as counsel to Whole Earth Brands, Inc., a Delaware corporation (the “Company”), in connection with the registration under the Securities Act of 1933, as amended (the “Act”), on a Registration Statement on Form S-1, filed with the Securities and Exchange Commission (the “Commission”) on July 24, 2020 (the “Registration Statement”) of (a) the issuance by the Company of up to 10,131,750 shares of common stock, par value $0.0001 per share (the “common stock”) from time to time upon the exercise of warrants, and (b) the resale from time of time of (i) an aggregate of 14,631,750 shares of common stock, consisting of (x) 12,000,000 shares of common stock and (y) 2,631,750 shares of common stock issuable upon the exercise of warrants, and (ii) 5,263,500 warrants, in each case, by the selling security holders named in the prospectus forming a part of the Registration Statement (the “selling security holders”).
This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K promulgated under the Act.
In rendering the opinions stated herein, we have examined the Registration Statement and the Amended and Restated Warrant Agreement, dated as of June 25, 2020, by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agreement”), which has been filed as Exhibit 4.2 to the Registration Statement, including the form of warrant certificate included therein. We have also examined such other documents, records, certificates, resolutions and other instruments deemed necessary as a basis for this opinion. We have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of all documents submitted to us as copies.
Based upon the foregoing and subject to the qualifications and assumptions stated herein, we are of the opinion that:
1. | The 10,131,750 shares of common stock issuable upon exercise of the warrants, when issued and paid in accordance with the terms of the Warrant Agreement, will be validly issued, fully paid and non-assessable. |
2. | The 12,000,000 shares of common stock held by the selling security holders have been validly issued, and are fully paid and non-assessable. |
3. | The 5,263,500 warrants, exercisable for 2,631,750 shares of common stock, held by the selling security holders constitute valid and binding obligations of the Company. |
With your consent, we have assumed (a) that the warrants have been or will be duly authorized, executed and delivered by the parties thereto other than the Company, (b) that such warrants constitute or will constitute legally valid and binding obligations of the parties thereto other than the Company, enforceable against each of them in accordance with their respective terms, and (c) that the status of the warrants as legally valid and binding obligations of the parties will not be affected by any (i) breaches of, or defaults under, agreements or instruments, (ii) violations of statutes, rules, regulations or court or governmental orders or (iii) failures to obtain required consents, approvals or authorizations from, or to make required registrations, declarations or filings with, governmental authorities.
Whole Earth Brands, Inc.
July 24, 2020
Page 2
Our opinions expressed above are subject to the qualifications that we express no opinion as to the applicability of, compliance with, or effect of (i) any bankruptcy, insolvency, reorganization, fraudulent transfer, fraudulent conveyance, moratorium or other similar law or judicially developed doctrine in this area (such as substantive consolidation or equitable subordination) affecting the enforcement of creditors’ rights generally, (ii) general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law), (iii) an implied covenant of good faith and fair dealing, (iv) public policy considerations which may limit the rights of parties to obtain certain remedies, (v) any requirement that a claim with respect to any security denominated in other than U.S. dollars (or a judgment denominated in other than U.S. dollars in respect of such claim) be converted into U.S. dollars at a rate of exchange prevailing on a date determined in accordance with applicable law, (vi) governmental authority to limit, delay or prohibit the making of payments outside of the United States or in a foreign currency or currency unit and (vii) any laws except the laws of the State of New York and the Delaware General Corporation Law.
We hereby consent to the filing of this opinion with the Commission as Exhibit 5.1 to the Registration Statement. We also consent to the reference to our firm under the heading “Legal Matters” in the Registration Statement. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission.
We do not find it necessary for the purposes of this opinion, and accordingly we do not purport to cover herein, the application of the securities or “Blue Sky” laws of the various states to the offering of the warrants.
This opinion is limited to the specific issues addressed herein, and no opinion may be inferred or implied beyond that expressly stated herein. We assume no obligation to revise or supplement this opinion should the present laws of the State of New York or the Delaware General Corporation Law be changed by legislative action, judicial decision or otherwise.
This opinion is furnished to you in connection with the filing of the Registration Statement and is not to be used, circulated, quoted or otherwise relied upon for any other purposes.
Very truly yours,
/s/ DLA Piper LLP (US)
DLA Piper LLP (US)
Exhibit 23.1
Independent Registered Public Accounting Firm’s Consent
We consent to the inclusion in this registration statement of Whole Earth Brands, Inc. on Form S-1 of our report dated March 30, 2020, except as to Note 7, as to which the date is May 8, 2020, with respect to our audit of the financial statements of Act II Global Acquisition Corp. as of December 31, 2019 and for the year then ended, which report appears in the prospectus, which is part of this registration statement. We were dismissed as auditors on June 30, 2020 and, accordingly, we have not performed any audit or review procedures with respect to any financial statements appearing in such prospectus for the periods after the date of our dismissal. We also consent to the reference to our Firm under the heading “Experts” in such prospectus.
/s/ Marcum llp
Marcum llp
New York, NY
July 24, 2020
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
We consent to the reference to our firm under the caption "Experts" and to the use of our report dated April 10, 2020, except for the subsequent event discussed in Note 2 to the financial statements, as to which the date is May 8, 2020, with respect to the combined financial statements of Mafco Worldwide & Merisant, the Licorice and Sweetener Businesses of Flavors Holdings Inc., included in the Registration Statement (Form S-1) and related Prospectus of Whole Earth Brands, Inc. for the registration of its equity securities.
/s/ Ernst & Young
New York, New York
July 24, 2020