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 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 F China business. Founder and CEO James Taylor worked for General Motors Company 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 WKHS.
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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 WMT, FedEx Corporation FDX, Ryder System R, Ikea,
Penske Automotive Group, Inc. PAG and Hertz Global Holdings Inc 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, Amazon.com 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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