Hennessy Capital (NASDAQ:HCAC) is off to the races this morning! Today, the blank-check company announced that in just a few weeks, its shareholders will vote on a plan to merge with electric vehicle firm Canoo. As investors flock to the latest EV play, HCAC stock is shooting higher. So what do you need to know about the upcoming Canoo SPAC merger?
To start, investors should understand the big announcement. Today, Hennessy Capital announced a special shareholder meeting will take place Dec. 21. At that meeting, shareholders will vote on its pending acquisition of Canoo. If all goes well, the Canoo SPAC merger will close and Canoo will become a public company.
With that in mind, here are 12 things to know about HCAC stock:
- Hennessy Capital first came public in February 2019.
- At the time, it raised $261 million by selling 26.1 million units at $10 each.
- Additionally, at the time of its IPO, Hennessy said it was interested in acquiring an industrial or infrastructure business.
- However, the SPAC announced a business combination agreement with Canoo in August 2020.
- If shareholders approve the Canoo SPAC merger, the combined company will begin trading on the Nasdaq Exchange.
- The new ticker symbol will be GOEV, and public warrants will trade under GOEVW.
- Investors should note that initially, Canoo planned to trade under the symbol CNOO.
- Why does this matter for HCAC stock? Well, Hennessy hopes to benefit from the unique business model of Canoo.
- Importantly, the EV maker uses a so-called modular skateboard platform that gives its vehicles a unique shape.
- For instance, the Canoo CEO has called its debut vehicle a “spaceship on wheels.”
- Additionally, Canoo plans to disrupt the traditional vehicle ownership model.
- Instead of selling vehicles, Canoo plans to sell subscriptions to its EVs.
What to Know about HCAC Stock and the Canoo SPAC Merger
With HCAC stock up more than 25% this morning, it is clear investors are excited about the upcoming shareholder meeting. And importantly, there may be a good reason why. Beyond marking the culmination of yet another SPAC deal, Canoo is intriguing to investors because of its different approach.
Not sure what I mean? Just take a look at the flagship Canoo vehicle. It features bench seating, customizable decorations and a unique, symmetrical shape. According to the company, this design comes from what drivers actually want, and a desire to be sustainable. And for lack of a better description, CEO Ulrich Kranz may be entirely accurate in calling it a spaceship on wheels.
Lastly, along with the announcement this morning, HCAC stock is benefitting from a bit more company news. According to the press release, business for Canoo has never been better. Hennessy shared today that Canoo has seen a growth in consumer demand, increased its total addressable market and received new interest from potential partners. Because of this, Canoo will also be making a big announcement of its own on Dec. 17.
With just a few days until the shareholder vote, Canoo plans to unveil a multi-purpose delivery vehicle. Get ready for HCAC stock to stay in the spotlight, and stay tuned for the debut.
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 with InvestorPlace.com.