Michigan EV Startup Electric Last Mile In Talks To Go Public Via SPAC Merger: Report

Michigan-based electric vehicle company Electric Last Mile Solutions is in talks with blank check company Forum Merger III Corp FII to go public through a reverse merger, Bloomberg reported Wednesday.

What Happened: Special purpose acquisition company (SPAC) Forum raised $250 million in its initial public offering in August, as per a filing with the U.S. Securities and Exchange Commission.

Forum didn't specify any industry for its targeted acquisition plan but the company said it was seeking investment opportunities in entities valued between $500 million and $2 billion.

Why Does It Matter: Electric Last Mile has a 675,000 sq. ft. production plant in Indiana with a capacity to churn out 100,000 vehicles annually, as per its website. Its current product line comprises an Urban Delivery vehicle with a carrying capacity of 170 cubic feet and a range between 150 miles to 200 miles per charge. A complete charge typically takes close to two hours.

On Wednesday, there were reports of a U.K based EV company Arrival Ltd, merging with SPAC CIIG Merger Corp CIIC at a $5.4 billion valuation. CIIC soared 24.28% during Wednesday's trading hours and continued its upward momentum by another 22.75% during extended trading hours.

Price Action: FII recorded a marginal gain of 0.31% during trading hours, and rallied 14.8% higher during the extended hours at $11.25.