USHG Acquisition Corp. (HUGS) and Panera Brands Will Not Extend Partnership

July 1, 2022 7:31 AM EDT

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USHG Acquisition Corp. (NYSE: HUGS) (“HUGS”), a company sponsored by an affiliate of Union Square Hospitality Group, LLC, a leading hospitality business, and Panera Brands Inc. (“Panera”) announced today that, due to deteriorating capital market conditions, the parties have decided not to extend their previously announced agreement through which HUGS would have participated alongside the Panera Brands’ initial public offering.

Danny Meyer, Chairman of HUGS and founder of Union Square Hospitality Group said, “Based on current capital market conditions, it is unlikely that an initial public offering for Panera will happen in the near-term, and so we have agreed not to extend our partnership beyond its existing June 30 expiration date. We are disappointed that market timing was not on our side, especially as we have such tremendous admiration and respect for Panera, its entire management team and their partners at JAB." Mr. Meyer continued, “HUGS will now focus on searching for another partner that embodies the values consistent with HUGS and our Enlightened Hospitality roots, demonstrating that shareholder success is both dependent on and driven by an employee-first stakeholder culture.”

Adam Sokoloff, Chief Executive Officer of HUGS said, “HUGS was proud to co-create a unique structure that provided substantial benefits and significant optionality to our shareholders. As we begin our search for a new partner, we will use our broad business network and strategic operating experience to engage with market-leading companies led by forward-thinking management teams. We are open to exploring a variety of creative structures that maximize long-term value for all stakeholders.”

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