Another day, another special purpose acquisition company driving itself to big gains. Today, that company is Collective Growth (NASDAQ:CGRO), which was largely flying under the radar. That is, until major rumors started swirling last night. So what are those rumors? And what else do you need to know about CGRO stock here?
Everything started yesterday evening when Bloomberg reported some exciting news for Collective Growth. Allegedly, Israeli firm Innoviz Technologies is in talks to come public. Investors are chasing up CGRO stock because Innoviz specializes in the red-hot world of LiDAR sensors for self-driving cars.
With that in mind, here are 11 things to know about the Innoviz SPAC merger and CGRO stock:
- Collective Growth, a blank-check company, initially came public at the end of April 2020.
- At the time, it raised $150 million by offering 15 million units at $10 each.
- The Texas-based SPAC is led by former Canopy Growth (NASDAQ:CGC) CEO Bruce Linton and National Hemp Association Chairman Geoffrey Whaling.
- Because of this, the early expectation was that CGRO stock would acquire a cannabis company.
- However, Bloomberg reported last night that Collective Growth is working to raise $100 million to $350 million in new equity.
- This move would give CGRO stock a post-merger valuation of $1 billion or greater.
- Those close to the deal say Collective Growth is working to take Innoviz Technologies public.
- Innoviz is a LiDAR sensor startup, meaning it makes sensors that help autonomous vehicles navigate their surroundings and move safely.
- Currently, it counts Samsung (OTCMKTS:SSNLF) and Phoenix Insurance as some of its investors.
- As of right now, representatives from both Collective Growth and Innoviz have not confirmed the deal.
- This means CGRO stock is up more than 20% today on speculation.
Why CGRO Stock Is Surging Friday
So beyond the broad interest in SPAC stocks, why is CGRO stock soaring on Friday? Well, much of the answer to that question has to do with self-driving cars.
As industry experts tell it, the novel coronavirus pandemic initially brought autonomous vehicle research to a screeching halt. However, the same pandemic catalysts have reversed course, spiking a wave of new interest. Now, startups are working on contactless delivery for prescription medications and groceries. Other companies are working to develop contactless fleets of robotaxis. Although there are companies focusing on the actual vehicles, investors have recently turned their attention to the sensors.
With this backdrop, two other LiDAR companies recently came public through SPACs. Velodyne Lidar (NASDAQ:VLDR) graced the public markets earlier. And just yesterday, Luminar (NASDAQ:LAZR) closed its reverse merger with Gores Metropoulos. Since then, LAZR stock has been on fire.
Right now, investors should remember that Innoviz Technologies and Collective Growth have not confirmed the deal. Plus, Innoviz is still working to get its sensors and perception software into market, with debuts starting in 2021. That means there is a lot on the line.
However, there is no denying that the AV market is hot. Keep a close eye on CGRO stock here.
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.