Lion Electric, a maker of medium and heavy-duty electric vehicles (EV), is looking to go public via a special purpose acquisition company (SPAC) merger. This will have it combining with Northern Genesis Acquisition (NYSE:NGA). Here’s what investors need to know about the merger.
To start, Lion Electric is a Canadian-based maker of electric school buses. It was founded in 2011 and originally focused on creating more typical buses. However, starting in 2017 the company rebranded itself to focuses on EVs. It’s previous endeavors have seen it teaming up with The Shyft Group (NASDAQ:SHYF), formerly Spartan Motors, to create bus chassis.
Let’s take a deeper dive into the Lion Electric SPAC merger and what it means for the company.
- The deal will have Lion Electric trading on the New York Stock Exchange under the “LEV” ticker.
- It also places the pro forma implied market capitalization of the new company at $1.9 billion.
- Lion Electric is set to receive roughly $500 million in cash proceeds from the SPAC merger.
- $200 million of this comes from a private investment in public equity (PIPE) and $3320 million in cash held by Northern Genesis.
- The company plans to use these funds to further its growth plans.
- That includes the creation of a U.S. vehicle manufacturing facility, continued development of advanced battery systems, and the construction of a highly automated battery factory.
- Lion Electric and Genesis Acquisition are expecting the SPAC merger to close in the first quarter of 2021.
So why are investors taking such an interest in the Lion Electric SPAC merger? Lately, EVs have been all the rage on the stock market as investors weigh the mass amount of options in the field.
NGA stock was up 8.6% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.