Freyr is planning to go public via a merger with special purpose acquisition company (SPAC) Alussa Energy Acquisition (NYSE:ALUS) and shares of ALUS stock are on the rise Friday.
Here’s everything potential ALUS stock investors need to know about Freyr ahead of its SPAC merger.
- Freyr is a clean battery company with plans to expand its business with higher production.
- That includes reaching 43 GWh of battery cell production by 2025.
- Doing so would make it one of the largest battery cell suppliers in Europe.
- It plans to locate its battery production facilities in Northern Norway to take advantage of its clean energy sources.
- The company says that it will create batteries for use in electric vehicles (EVs), as well as for energy storage and marine applications.
- Today’s news notes that the combined company from the Freyr and Alussa Energy SPAC merger would have a value of $1.4 billion.
- The SPAC merger will provide Freyr with $850 million in net proceeds.
- $600 million of this comes from a private investment in public equity (PIPE).
- Once the merger is complete, current Freyr shareholders will own 30% of the combined company.
- When the deal closes, the new company will operate under the name Freyr Battery.
- This will also see shares of ALUS stock change to the FREY stock ticker.
- The merger is expected to close in the second quarter of 2021
- ALUS stock is seeing heavy trading on the news with some 8 million shares having changed hands as of this writing.
- The stock’s daily average trading volume is only about 112,000 shares.
ALUS stock was up 16.8% 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.