A Closer Look At The FMCI-Tattooed Chef Deal

What Happened: Special purpose acquisition companies have continued to make the news.

Stocks such as Draft Kings DKNG, Virgin Galactic SPCE and Nikola Motors NKLA have shown double- to triple-digit growth in their first weeks of trading.

Last week, FMCI FMCI made headlines when it announced plans to merge with the plant-based food company Tattooed Chef.

The merger has not occurred yet, but if it's successful, investors will have the opportunity to own shares in this high-growth innovative company.

Why It Matters: Tattooed Chef offers a private label presence in top grocery stores like Costco COST and Walmart WMT.

Tattooed Chef's private label is a key factor that separates it from competition like Beyond Meat BYND.

Unlike many SPACs, FMCI gives investors an opportunity to invest in businesses with existing products and customers.

What’s Next: The plant-based food market has grown 29% in the past two years. and this growth is expected to continue.

Tattooed Chef has taken advantage of this opportunity. From 2018 to 2019, the company increased revenues from $47.9 million to $84.9 million. This 77% growth rate is projected to continue, as the company expects to have $222 million in yearly revenue by 2022.

This growth is seen in many of Tattooed Chef’s products, such as the Acai Bowl. The sales revenues from this product increased from $1.2 million in the first six months to $9.2 million by the end of the year.

Photo by Guapi-Tecnologies via Wikimedia.