Canadian electrical truck and bus producer The Lion Electric Company stated Monday it plans to turn out to be a publicly traded firm through a merger with special-purpose acquisition firm Northern Genesis Acquisition Corp.
The mixed firm, which might be listed on the New York Stock Exchange, can have a valuation of $1.9 billion. The corporations raised $200 million in personal funding in public fairness, or PIPE, and maintain about $320 million in money proceeds.
The deal is the most recent instance of an electrical automaker opting to go public through a SPAc merger in an intention to entry the extent of capital wanted to turn out to be a high-volume automobile producer. Arrival, Canoo, Fisker, Lordstown Motors and Nikola Corp., have all introduced SPAC mergers in 2020.
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In Lion’s case, the mixed web money might be used to fund the corporate’s development, notably the deliberate development of a U.S.-based manufacturing facility and to additional develop its superior battery programs. Lion is evaluating greater than 10 potential brownfield plant websites in 9 states, together with California, Illinois, Indiana, Michigan, New York, Ohio, Oregon, Pennsylvania, Washington and Wisconsin. The firm instructed TechCrunch it plans to to select a website and full its industrialization plan by the top of the 12 months. Production at this yet-to-be named manufacturing facility is predicted to start out to start with of 2023.
Lion is already producing all-electric medium and heavy-duty city vehicles and buses at a 2,500-vehicle-per-year manufacturing facility. Some 300 automobiles are on the street in the present day and the corporate has plans to to ship 650 vehicles and buses in 2021. It even landed a contract with Amazon to produce the e-commerce big with 10 electrical vehicles for its ‘center mile’ operations.
Completion of the proposed transaction is predicted to happen within the first quarter of 2021. Lion is predicted to be listed on the NYSE underneath the brand new ticker image “LEV.” Lion’s CEO and founder Marc Bedard will proceed in his function. The mixed firm can have a board of administrators consisting of 9 administrators, together with Bedard, Pierre Larochelle from Power Sustainable as Chairman, and 5 different present Lion board members, in addition to Ian Robertson and Chris Jarratt, who’re co-founders of Algonquin Power & Utilities Corp.
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