Lordstown Motors has agreed to go public by a merger with blank-check company DiamondPeak Holdings in a deal that values the electrical pickup truck start-up at $1.6 billion, the businesses said on Monday.
The mixed company shall be known as Lordstown Motors Corp following the closure of the deal within the fourth quarter and can commerce on the Nasdaq under the ticker image “RIDE,” the businesses said.
A blank-check company is a shell company that raises cash by an preliminary public providing to purchase an working entity, sometimes inside two years.
A bunch of electrical automobile makers together with Nikola Corp and Fisker have both gone public or are planning to listing their shares by mergers with blank-check corporations this year.
“Lordstown … has a transformational product and business plan in what are two of the most valuable areas of focus and tremendous opportunity in the auto sector – electric vehicles and light duty trucks,” DiamondPeak Chief Executive David Hamamoto said on a convention name. “Lordstown has attracted a clear lane of customers in the commercial fleet segment of the market.”
Lordstown has been engaged on a brand new full-size electrical pickup truck known as Endurance and last year employed Rich Schmidt, a former director of producing at Tesla Inc, as chief manufacturing officer.
The company said the truck is aimed on the U.S. industrial fleet market, with preliminary manufacturing expected within the second half of 2021. The Endurance may have an electrical driving vary of 250 miles and a price tag of $45,000 internet of a federal tax credit score, Lordstown CEO Steve Burns said on the decision.
Lordstown expects to obtain about $675 million of gross proceeds from the deal and can use the funds for the manufacturing of the brand new truck, which has secured $1.four billion value of pre-orders, the company said.
The deal contains investments by General Motors and institutional traders, together with Fidelity Management and Research Company LLC, Wellington Management Company LLP, Federated Hermes Kaufmann Small Cap Fund, and funds and accounts managed by BlackRock, amongst others, Lordstown said.