Market Overview

Electric Last Mile SPAC Merger: What Investors Should Know

Electric Last Mile SPAC Merger: What Investors Should Know

Electric delivery van company Electric Last Mile is set to go public through a SPAC merger with Forum Merger III Corporation.

The SPAC Deal: Electric Last Mile will merge with Forum Merger III Corporation (NASDAQ: FIII). The deal values the company at $1.4 billion.
Forum Merger III shareholders will own 17.6% of the new company. Electric Last Mile will trade under the ticker "ELMS" on the NASDAQ.

About Electric Last Mile: The Electric Last Mile team includes founder and chairman Jason Luo, who was previously the chairman and CEO of Ford Motor Company’s (NYSE: F) China business. Founder and CEO James Taylor worked for General Motors Company (NYSE: GM) for more than 30 years, holding roles that included president of Cadillac and CEO of Hummer. Taylor is also the former chairman and CEO of Workhorse Group (NASDAQ: WKHS).

Related Link: Lion Electric Announces SPAC Deal With Northern Genesis: What Investors Need To Know

The Commercial Vehicle Market: Electric Last Mile is set to launch the Urban Delivery Van in the third quarter of 2021. This could be the first electric Class I commercial vehicle to come to market.

The vehicle will have the same price as gas vehicles and also have 20% more cargo space, which could make it attractive to delivery companies.

The company has over 30,000 pe-orders from customers, which include leading brands and some of the largest fleet managers in the country. The orders represent over $1 billion in revenue.

Electric Last Mile named Walmart Inc (NYSE: WMT), FedEx Corporation (NYSE: FDX), Ryder System (NYSE: R), Ikea,

Penske Automotive Group, Inc. (NYSE: PAG) and Hertz Global Holdings Inc (OTCMKTS: HTZGQ) as customers. 

The company is using a former Hummer plant in Indiana that has been retrofitted for electric vehicle production.

Electric Last Mile said they have first-mover advantage in the last-mile segment.

The North American e-commerce market has grown to $1 trillion and created a need for new, low-cost Class I vehicles, according to the company.

Electric Last Mile Financials: The company expects to have revenue of $122 million in fiscal 2021 and $613 million in fiscal 2022. Electric Last Mile sees revenue growing at a compounded annual growth rate of 123% from 2021 to 2025, hitting a total of $3 billion by 2025.

Units sold are seen growing from 4,000 to 83,000 by the year 2025.

Future Growth: The company is planning on launching a Class 2/3 Urban Utility Van in 2022. This product would compete with Workhorse, (NASDAQ: AMZN) Rivian and Ford.

In 2023, Electric Last Mile is planning on launching a new vehicle for the China and European markets.

FIII Price Action: Shares of Forum Merger III were trading 12.69% higher at $13.22 at last check Friday. 

Courtesy photo. 


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