Kensington Capital (NYSE:KCAC) news for Thursday includes a merger announcement with QuantumScape boosting KCAC stock.
Kensington Capital will be taking part in a reverse merger with QuantumScape that will take the latter public without the need for an IPO. After this, the company will likely adopt the QuantumScape name and will change its stock ticker to “QS.”
The reverse merger will result in the creation of a company with a valuation of $3.3 billion. Kensington Capital and QuantumScape are expecting the deal to close by the end of the year.
Kensington Capital is a shell company that was specifically made with the intent of a reverse merger. QuantumScape is a battery company connected to Volkswagen (OTCMKTS:VWAGY). It seeks to create solid-state batteries for VWAGY and other car companies, reports Reuters.
Justin Mirro, chairman and CEO of Kensington Capital, said the following to CNBC while speaking about the merger news.
“While there’s a lot of other SPACs out there to claim they’re automotive experts maybe for the last 30 days, we’ve been automotive experts for the last 30 years.”
It’s worth pointing out that Mirro has a long history in the automotive industry. That includes working as an automotive engineer for General Motors (NYSE:GM) and Toyota Motor (NYSE:TM). However, he eventually became an investment banker and formed Kensington Capital in 1999.
KCAC stock was up 72.2% as of Thursday afternoon after only seeing a 1% increase year-to-date as of Wednesday’s close.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.