Canadian electrical truck and bus producer The Lion Electrical Firm stated Monday it plans to change into a publicly traded firm through a merger with special-purpose acquisition firm Northern Genesis Acquisition Corp.
The mixed firm, which will probably be listed on the New York Inventory Trade, could have a valuation of $1.9 billion. The businesses 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 goal to entry the extent of capital wanted to change into a high-volume automobile producer. Arrival, Canoo, Fisker, Lordstown Motors and Nikola Corp., have all introduced SPAC mergers in 2020.
In Lion’s case, the mixed web money will probably be used to fund the corporate’s progress, notably the deliberate development of a U.S.-based manufacturing facility and to additional develop its superior battery techniques. 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 corporate instructed TechCrunch it plans to to select a website and full its industrialization plan by the top of the yr. Manufacturing at this yet-to-be named manufacturing facility is predicted to begin to start with of 2023.
Lion is already producing all-electric medium and heavy-duty city vans and buses at a 2,500-vehicle-per-year manufacturing facility. Some 300 autos are on the street in the present day and the corporate has plans to to ship 650 vans and buses in 2021. It even landed a contract with Amazon to produce the e-commerce large with 10 electrical vans 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 below the brand new ticker image “LEV.” Lion’s CEO and founder Marc Bedard will proceed in his function. The mixed firm could have a board of administrators consisting of 9 administrators, together with Bedard, Pierre Larochelle from Energy Sustainable as Chairman, and 5 different present Lion board members, in addition to Ian Robertson and Chris Jarratt, who’re co-founders of Algonquin Energy & Utilities Corp.