Grabagun Goes Public on NYSE
Grabagun, an online firearms retailer, made its debut on the New York Stock Exchange on July 16. This move is backed by a special purpose acquisition company (SPAC) associated with Donald Trump Jr. and Omeed Malik, who is the founder of 1789 Capital.
In celebration of the listing, Trump Jr., Malik, and Grabagun’s CEO, Mark Nemati, will ring the opening bell. Trump Jr. joined the ranks of 1789 Capital last November and is set to serve as a special advisor for this online firearms and accessories business.
This event seems to mark another chapter in the SPAC phenomenon—these corporations are designed to take private companies public. The Colombier II, under the name SPAC Grabagun Public, went public in October 2023, amid a larger trend where 61 such blank check companies have launched this year. To date, they have raised about $12.4 billion, reflecting a resurgence since 2021 when SPAC investments peaked at $162.6 billion.
However, this trend also hints at a welcoming environment for businesses previously sidelined on Wall Street.
Trump Jr. has mentioned that Grabagun embodies 1789’s aim to support enterprises that have unfortunately been blacklisted by more conventional financial avenues.
“It illustrates our business model,” he stated, highlighting their commitment to providing a platform for companies that lack the usual support structures.
Malik echoed this sentiment, characterizing the listing as a “reverse” transaction that focuses on companies typically overlooked by traditional investors.
Both Trump Jr. and Malik have positioned themselves as prominent figures in what they’ve termed the “parallel economy.” This approach capitalizes on opportunities often missed by investors who favor companies that prioritize environmental, social, and governance issues, commonly referred to as ESG investing.
In contrast to ESG, Malik has introduced the concept of EIG—Entrepreneurship, Innovation, and Growth—reflecting the goals of 1789 Capital.
The agreement values Grabagun at roughly $150 million. A representative from the company shared that it generated over $100 million in revenue last year and is already operating profitably.
Interestingly, Grabagun is targeting a younger demographic, specifically Millennials and Gen Z, with a notable 57% increase in purchases from individuals aged 18 to 35.
Additionally, 1789 Capital has reportedly raised over $150 million from various sources, including media outlets and Republican donors, aiming to make strategic investments, such as in the Tucker Carlson Network.
