Revolution Acceleration (NASDAQ:RAAC) stock is on the rise on the rise Wednesday following news that the special purpose acquisition company (SPAC) plans to merge with Berkshire Grey.
Here’s everything investors need to know about RAAC stock and the upcoming SPAC merger.
- Revolution Acceleration is a blank-check company created with the purpose of taking a private company public via merger.
- It’s run by CEO John Delaney, who will join the Board of Directors at the combined company once the merger is complete.
- Berkshire Grey is an artificial intelligence (AI) and robotics solutions company.
- Its focus is on offering robots to retailers that can be used to handle various work tasks.
- That includes the ability to sort and pick out items in warehouses and logistics fulfillment centers.
- The company argues that this allows e-commerce companies to continue to offer low prices by reducing their costs of labor.
- It says that customers typically save enough money over the course of two to three years to justify purchasing the robots.
- Berkshire Grey is expected to come out of the SPAC merger with $413 million in proceeds.
- That includes $165 million raised from private investment in public equity (PIPE).
- When the deal closes, this will leave Berkshire Grey with a total of $507 million in cash.
- This will allow it to continue further operations and won’t result in it having any debt on its balance sheets.
- The deal is set to close in the second quarter of 2021.
RAAC stock was up 14.4% as of noon Wednesday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.