EV maker Lordstown Motors to go public by merging with…

EV maker Lordstown Motors to go public by merging with…

A lot of electrical auto makers consisting of Nikola Corp and Fisker have actually either gone public or are preparing to note their shares through mergers with blank-check business this year.

The electric truck company has entered into a definitive agreement with DiamondPeak Holdings Corp.

A blank check company is generally referred to as a "special goal acquisition company" (SPAC), which is formed in order to raise funds via an IPO to finance a merger or acquisition.

The fully-electric Endurance designed for commercial customers, a market segment now dominated by the gas-powered models including the Ford F-Series pickups and trucks from General Motors and its truck division GMC. The combined company will trade on the Nasdaq under the new symbol "RIDE". Lordstown says the deal should be completed by the fourth quarter of 2020.

The big picture: Lordstown is one of several electric vehicle companies to use a SPAC to raise money and go public.

GM's investment, part of a $500 "private investment in public equity (PIPE)" transaction, is understood to include $25 million in cash, plus a $50 million amount that's implied as the value in the plant, according to the Detroit Free Press.

The new company will be called Lordstown Motors Corp.

Following the success stories of rivals Nikola, Rivian, Fisker, and Tesla, Lordstown is expected to be listed at an initial valuation of $US1.6 billion ($AU2.25 billion) thanks to a merger deal with DiamondPeak Holdings.

Last November, Lordstown Motors bought the former General Motors assembly plant, a 6.2 million square foot facility, in Lordstown, Ohio.

"We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition", said Steve Burns, CEO of Lordstown.

Lordstown has also said that it has taken more than 27,000 orders for the Endurance since the presentation in June.

The Lordstown Endurance electric truck has some unique design elements to better serve commercial customers. "Our all-electric full-size pickup truck delivers the equivalent of 75 miles per gallon and has been systematically engineered and competitively priced specifically for the large commercial fleet market, which includes companies in manufacturing, contracting, utilities, transportation and delivery, and agriculture, among others".



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