Climate Change Crisis Real Impact I Acquisition Corporation (NYSE:CLII) stock is on the rise after announcing plans to take EVgo public via a special purpose acquisition company (SPAC) merger.
The deal will have Climate Change Crisis Real Impact changing its name to EVgo Inc. It will also see shares of CLII stock change to the new EVGO stock ticker.
EVgo is an electric vehicle (EV) charging company that offers services throughout the U.S. The company is the largest in the country with more than 800 locations across 34 states. It also serves some 220,000 customers.
Climate Change Crisis Real Impact’s decision to bring EVgo public will have it supplying the company with $575 million to work with. That comes from $230 million it holds in trust and $400 million from private investment in public equity (PIPE).
EVgo notes that it plans to use the funds from the SPAC merger to expand its business. That includes continuing to build out its EV charging network. It’s also worth noting that owners of EVgo, which includes LS Power and EVgo management, are transferring over all of their equity into the new company.
EVgo will continue to operate under the same management once the SPAC merger with CLII is complete. It’s Board of Directors will be made up of executives from EVgo, LS Power, and Climate Change Crisis Real Impact.
EVgo and Climate Change Crisis Real Impact are expecting the deal to close during the second quarter of 2021.
CLII stock was up 77.4% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
