Earlier in November, electric vehicle charging play Nuvve announced it was coming public via a special purpose acquisition company. Now, it looks like investors are ready to dive in. Shares of the SPAC, Newborn Acquisition (NASDAQ:NBAC), are surging higher by more than 50%. So what do you need to know about NBAC stock? And why is it so hot ahead of the Nuvve SPAC merger?
With those questions in mind, here are 14 things investors should know about NBAC stock now.
- Newborn Acquisition launched its initial public offering in February 2020.
- At the time, it raised $50 million by selling 5 million shares at $10 each.
- Investors should note that Newborn Acquisition is a Chinese SPAC. When it came public, it said it wanted to focus on businesses in either the U.S. or Asia.
- Importantly for NBAC stock, the blank-check company is incorporated in the Cayman Islands.
- Perhaps the biggest news for shareholders came a few weeks ago.
- Newborn Acquisition announced it would bring Nuvve, an EV charging company, public.
- Unlike rivals Blink Charging (NASDAQ:BLNK) and ChargePoint (NYSE:SBE), Nuvve offers vehicle-to-grid solutions.
- This means that when cars are plugged in and not in use, they can contribute back into the grid.
- Also importantly, many industry experts think this will help boost consumer adoption while also helping the power grid manage the growing presence of EVs.
- There is also interest in V2G solutions to help power commercial and municipal EV fleets.
- Nuvve currently has found success in the European market, where V2G solutions are popular.
- When it comes public, Nuvve will trade on the Nasdaq Exchange.
- It will then trade under the ticker NVVE.
- Additionally, the combined company could have an enterprise value as high as $130 million.
What You Need to Know About NBAC Stock
Broadly, investors have been very interested in electric vehicle stocks and all sorts of adjacent plays. This has taken Nuvve rivals Blink Charging and ChargePoint to new heights. Will Nuvve and NBAC stock continue to benefit from the same catalysts? It looks likely, especially as there is no real news driving Newborn Acquisition up in the market today.
Investors should also know about a recent announcement from the company. Last week, Nuvve and Newborn Acquisition shared an exciting development. Nuvve and Lion Electric are forming a V2G partnership. What does that mean? Well, Canada-based Lion Electric focuses on developing heavy-duty electric vehicles like all-electric school buses. Now, it wants to work with Nuvve to make sure its fleets incorporate V2G solutions as a standard feature.
Why does that matter? Well, a large part of the thesis for NBAC stock is that Nuvve will shine in the realm of electric vehicle fleets. As it looks for new customers ahead of the Nuvve SPAC merger, it is important that it is gaining some fans in Canada. Just how meaningful the Lion Electric deal will be remains to be seen, but it is certainly a reason for optimism.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.