EV maker Lion Electric go public through SPAC
Electric-vehicle maker Lion Electric Co that it would go public through a merger with blank-check company Northern Genesis Acquisition Corp.
EV maker Lion Electric
Lion Electric expects to get about $500 million of net cash proceeds from the deal. The company said it would use the proceeds to fund the expansion of its U.S. manufacturing capacity, the development of advanced battery systems and the construction of a battery system assembly factor.
Lion Electric’s shareholders are expected to hold about 70% of the combined company’s common equity after the deal is closed, assuming no redemptions from Northern Genesis’ shareholders. The deal, which is expected to create a company with a market value of about $1.9 billion, is likely to close in the first quarter of 2021.
GM walks away from stake in EV maker Nikola
General Motors will not be taking a stake in the electric vehicle company Nikola announced that it will scuttle on its marquee vehicles, an electric and hydrogen-powered pickup.
Shares of Nikola plunged 26% between the companies for a supply agreement related to GM’s fuel-cell system, replacing an agreement signed in September. That deal would have given GM an 11% stake in Nikola. The early agreement would also have allowed Nikola to use GM’s new battery-electric truck underpinnings for the Badger and its fuel cell and battery technology as well.
“In a nutshell, the signing of GM as a partner is a positive but ultimately no ownership/equity stake in Nikola and the billions of R&D potentially now off the table is a major negative blow to the Nikola story,” said Wedbush analyst Dan Ives. “This went from a game-changer deal for Nikola to a good supply partnership but nothing to write home about.”
“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market,” said CEO Mark Russell.
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