Group Nine Media announced last month its intention to establish a SPAC – an acronym for special purpose acquisition corporation – as a means of securing capital for future acquisitions.

The organization has now progressed with these initiatives, disclosing last night that the SPAC’s initial public offering was priced at $10 per unit, generating a total of $200 million. Currently listed on Nasdaq with the ticker symbol GNACU, the stock experienced a 6.55% increase as of 2:53 p.m. Eastern time. (Ultimately, the Class A common stock will trade under the symbol GNAC, and warrants will be listed independently as GNACW.) The offering is anticipated to be finalized on January 20.

The acquisition corporation, mirroring Group Nine’s structure, is headed by CEO Ben Lerer (shown above). Richard D. Parsons, a partner at Imagination Capital, and Jen Wong, Chief Operating Officer of Reddit, also serve on the board of directors.

Group Nine originated in 2016 through investments from Discovery, resulting from the combination of Thrillist, NowThis, The Dodo, and Seeker. The company later integrated PopSugar into its portfolio, with co-founder Brian Sugar assuming the role of president for both Group Nine and the newly formed Group Nine Acquisition Corp.

SPACs, frequently referred to as blank-check corporations, have gained prominence as a method for companies to obtain funding through public markets. In its preliminary documentation, Group Nine indicated that the raised funds would be allocated “to accomplish a merger, exchange of capital stock, acquisition of assets, purchase of stock, reorganization, or a comparable business combination.”