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SPAC Surges 20% On Merger Deal With EV Company Lightning eMotors

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SPAC Surges 20% On Merger Deal With EV Company Lightning eMotors

Auto electrification company Lightning eMotors will go public through a merger with the special purpose acquisition company GigCapital3 Inc (NYSE: GIK) under a definitive agreement announced Thursday.

What Happened: The SPAC's shares surged 20.6% after-hours at $15.2 after the announcement of the deal.

The merged company will be named Lightning eMotors Inc. and list on the New York Stock Exchange under the ticker "ZEV."  The transaction is expected to close sometime in the first half of 2021.

The private investment in public equity deal will raise $125 million in proceeds, backed by the issue of equity and convertible securities. Lightning eMotors’ pro-forma equity valuation is anticipated at approximately $823 million.

Lightning eMotors procures vehicle chassis from suppliers like Ford Motor Co (NYSE: F) and mounts various components to manufacture and electrify vehicles. The assembly takes place in Lightning eMotors’ 250,000 sq. ft. facility in Colorado.

Apart from manufacturing electric trucks, vans, and buses, the company is also in the business of EV charging services.

Why Does It Matter: Founded in 2008 and formerly known as Lightning Hybrids LLC, the company was renamed in October this year. According to Crunchbase, the company raised $50.1 million from five funding rounds, with the latest series in December 2019 raising $41 million from BP Ventures.

In October, Lightning eMotors disclosed that, to support the rising production numbers, the company has also doubled its manufacturing space, with further planned expansions over time. The forecast production target by 2025 is pegged at 20,000 mid-sized commercial vehicles.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news. 

 

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