Canadian electric truck and bus manufacturer The Lion Electric Company said Monday it prepares to become an openly traded company by means of a merger with unique purpose acquisition company Northern Genesis Acquisition Corp.
. The combined company, which will be noted on the New York Stock Exchange, will have an assessment of $1.9 billion. The business raised $200 million in personal financial investment in public equity, or PIPE, and hold about $320 million in money profits.
The deal is the latest example of an electrical car manufacturer deciding to go public by means of a SPAC merger in an objective to access the level of capital needed to become a high-volume car manufacturer. Arrival, Canoo, Fisker, Lordstown Motors and Nikola Corp. have all revealed SPAC mergers in 2020.
In Lion’s case, the combined net cash will be used to fund the business’s growth, especially the scheduled construction of a U.S.-based factory and to further establish its advanced battery systems. Lion is assessing more than 10 potential brownfield plant websites in nine states, consisting of California, Illinois, Indiana, Michigan, New York City, Ohio, Oregon, Pennsylvania, Washington and Wisconsin. The company informed TechCrunch it plans to select a website and finish its industrialization strategy by the end of the year. Production at this yet-to-be named factory is anticipated to start in the start of 2023.
Lion is currently producing all-electric medium and sturdy metropolitan trucks and buses at a 2,500-vehicle-per-year production center. Some 300 cars are on the road today and the business has plans to deliver 650 trucks and buses in 2021. It even landed an agreement with Amazon to provide the e-commerce giant with 10 electric trucks for its ‘middle mile’ operations.
Completion of the proposed transaction is anticipated to occur in the very first quarter of 2021. Lion is expected to be noted on the NYSE under the new ticker symbol “LEV.” Lion’s CEO and founder Marc Bedard will continue in his role. The combined business will have a board of directors including nine directors, consisting of Bedard, Pierre Larochelle from Power Sustainable as Chairman, and 5 other existing Lion board members, in addition to Ian Robertson and Chris Jarratt, who are co-founders of Algonquin Power & & Utilities Corp.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.