Electric powered motor vehicle maker Canoo reported it will go public by using a reverse merger with “blank check out” business Hennessy Capital Acquisition Corp. later this year.
The Los Angeles-centered motor vehicle maker strategies to elevate $600 million in the SPAC offering, netting the blended entity a valuation of $2.4 billion.
Canoo is now the fourth electric powered car or truck maker to go public by means of a SPAC in 2020, following Nikola Corp., Fisker Inc., and Lordstown Motors.
The deal is envisioned to close in the fourth quarter and Cannoo will trade on the Nasdaq beneath the ticker image CNOO.
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The warm SPAC trend of 2020 ongoing on Tuesday following Canoo, an electric vehicle maker centered in Los Angeles, announced it would go public via a reverse merger with Hennessy Capital Acquisition Corp. in a deal valued at $2.4 billion.
The deal will elevate $600 million in resources for Canoo, which will be utilized to support the improvement and start of its auto lineup.
Canoo programs to start its initial model, dubbed “Canoo,” in 2022, adopted by a business-to-business commercial delivery vehicle in 2023.
Canoo joins Nikola Corp., Fisker Inc., and Lordstown Motors as the most current EV enterprise to go public by using the reverse-merger system, sidestepping the standard IPO method, which can be pricey and well timed.
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But Canoo separates itself from the other EV makers in its business model. Fairly than promote electrified pickup trucks and sedans directly to shoppers, Canoo plans to offer its cars by subscription.
The car business ideas to produce a no-motivation, month-to-thirty day period membership-based business enterprise model that provides its members obtain to their own Canoo motor vehicle and incorporates maintenance, warranty, insurance, and accessibility to electric powered charging ports.
Canoo also separates alone from its EV reverse-merger friends in phrases of the original share price reaction write-up merger announcement.
Whereas Nikola, Fisker, and Lordstown all expert a surge in share price for their respective SPAC merger targets, Hennessy Capital Acquisition Corp. is flat in Tuesday trades. This alerts that the the latest flood of inventory hitting the market for EV startups could possibly be outweighing trader demand.
In the meantime, the demand for shares of Tesla looks insatiable as buyers bid the inventory up far more than 30% considering that it introduced a 5-for-1 stock split last week.
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