Benzinga | Dec 2, 2021 08:14AM EST

CF Acquisition Corp. VI Shares Up 26% Following Late Wednesday Press Release Video Platform Rumble Will Go Public Via SPAC Deal With CF Acquisition Corp. VI, Initial Enterprise Value Of $2.1B

- Tremendous growth from 1.6 million average monthly active users in Q3 2020 to a record 36 million average monthly active users in Q3 2021

- 44 million monthly active users in August 2021

- Viewer engagement grew 44x from Q2 2020 to Q3 2021 to 8 billion minutes watched per month1

- Transaction is expected to provide approximately $400 million in proceeds2 to Rumble, including a fully committed PIPE of $100 million at $10.00 per share and $300 million of cash held in the trust account of CFVI

- Transaction values Rumble at an enterprise value of $2.1 billion3

- Rumble Founder and Chief Executive Officer to retain voting control to facilitate execution of Rumble's neutral mission on behalf of all stakeholders

TORONTO and NEW YORK, Dec. 1, 2021 /PRNewswire/ -- Rumble Inc. ("Rumble" or "the Company"), the neutral video platform, and CF Acquisition Corp. VI (NASDAQ:CFVI) ("CFVI"), a special purpose acquisition company sponsored by Cantor Fitzgerald, today announced that they have entered into a definitive business combination agreement. After closing, which is expected in the second quarter of 2022, the combined company will be called Rumble Inc. and expects to be publicly listed on Nasdaq. Shares will trade on Nasdaq under the symbol CFVI until the closing of the transaction.

Rumble was built on the belief that all creators should have the opportunity to freely express themselves and reach their followers without censorship or restrictions.

Chris Pavlovski, the Founder and Chief Executive Officer of Rumble, said, "Rumble is designed to be the rails and independent infrastructure that is immune to cancel culture. We are a movement that does not stifle, censor, or punish creativity and believe everyone benefits from access to a neutral network with diverse ideas and opinions. We are on a mission to restore the internet to its roots by making it free and open once again. The transaction we announced today will provide Rumble with the additional capital necessary to continue to scale our business and carry out our mission."

Howard Lutnick, Chairman and CEO of Cantor Fitzgerald and CFVI, stated, "Rumble is the most exciting social media and video distribution platform in the market today. With 36 million average monthly active users in Q3 2021, including 44 million monthly active users in August 2021, it is clear Rumble is the new market for innovators, creators, and consumers. I'm excited to support Rumble and its ability to operate the neutral video platform."

Transaction Details

The Board of Directors of each of Rumble and CFVI have unanimously approved the transaction. The transaction will require the approval of the stockholders of each of CFVI and Rumble. The Rumble stockholders have agreed to support the transaction. The transaction is subject to other customary closing conditions and is expected to close in the second quarter of 2022.

The transaction values Rumble at an initial enterprise value of $2.1 billion, with current Rumble shareholders having the ability to earn additional shares of the combined company if the stock reaches price hurdles of $15.00 and $17.50 per share.4 The transaction is expected to provide approximately $400 million in proceeds5 to Rumble, including a fully committed PIPE of $100 million at $10.00 per share and $300 million of cash held in the trust account of CFVI.

Upon the closing of the transaction, Chris Pavlovski, the Founder and Chief Executive Officer of Rumble, will retain voting control to facilitate execution of Rumble's neutral mission on behalf of all stakeholders.

Additional information about the proposed transaction, including a copy of the business combination agreement and investor presentation, will be available in a Current Report on Form 8-K to be filed by CFVI with the U.S. Securities and Exchange Commission (the "SEC") and at www.sec.gov.

Advisors

Cantor Fitzgerald & Co. is acting as financial and capital markets advisor to CFVI. Hughes Hubbard & Reed LLP and Bennett Jones LLP are acting as legal advisors to CFVI.

Guggenheim Securities, LLC is acting as the exclusive financial advisor to Rumble. Willkie Farr & Gallagher LLP and DLA Piper Canada LLP are acting as legal advisors to Rumble.

Cantor Fitzgerald & Co. and Guggenheim Securities, LLC served as placement agents for the PIPE financing.