Market Overview

Electric Pickup Maker Lordstown Motors Going Public In Reverse Merger

Electric Pickup Maker Lordstown Motors Going Public In Reverse Merger

Electric pickup truck startup Lordstown Motors Corp. (LMC) is going public through a reverse merger with a special purpose acquisition company (SPAC), the latest clean transportation company to take a fast-track to public trading.

Former Workhorse Group Inc (NASDAQ: WKHS) CEO Steve Burns created LMC in 2019 with the purchase of a former General Motors Company (NYSE: GM) plant in northeast Ohio. GM is investing $75 million in LMC, including a mortgage loan to LMC and money for retooling the plant.

DiamondPeak Holdings Corp (NASDAQ: DPHC) is committing a total of $675 million from its 2019 initial public offering and private investment in public equity (PIPE) to fund the production of LMC's Endurance electric pickup truck.

A SPAC is created specifically to target a company for a friendly merger. DiamondPeak said it evaluated hundreds of companies before choosing LMC. The PIPE, which allows early investors to buy stock in DiamonPeak at a discount, is projected to raise $500 million, LMC said in a release Monday.

The combined company will remain listed on the NASDAQ under the ticker symbol RIDE.

This is a developing story. Come back to FreightWaves for updates.

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