Lordstown Motors to List Shares Through SPAC

The electric automaker Lordstown Motors is setting up to go public by a merger with a specific function acquisition enterprise (SPAC), DiamondPeak Holdings, the corporations declared.

Under the deal, which indicates a $1.six billion valuation for the enterprise, Lordstown Motors will acquire $500 million in funding (by a personal expenditure in public fairness) from Fidelity, Wellington Management, the Federated Hermes Kaufmann Small Cap Fund, and resources managed by BlackRock. In a statement, Lordstown Motors reported the deal will allow for it to start out generation of its flagship Endurance pickup truck in the second 50 % of 2021.

The enterprise reported it has additional than 27,000 pre-orders, symbolizing additional than $1.four billion in prospective revenue, for what it suggests will be the very first complete-sizing electric pickup truck to provide the business fleet current market.

The Endurance’s believed sale rate is $45,000 internet of a $seven,500 tax credit.

David Hamamoto, Chairman and Main Executive Officer of DiamondPeak, reported: “We have evaluated hundreds of corporations for additional than a yr and Lordstown stood out as a differentiated, superior expansion enterprise at the confluence of electric automobiles and light-weight-obligation vans, two very beneficial spots of concentrate and great opportunity in the automotive sector.”

The Lordstown plant was at the centre of controversy over tens of tens of millions of dollars in tax credits Normal Motors been given in trade for a dedication to maintain the plant open up. Previous November, GM sold the six.2 million square foot facility to Lordstown Motors. In March, the state of Ohio Progress Providers Company, which oversees financial incentive systems, notified GM it prepared to suggest that the tax agreements be terminated and the taxes be repaid.

On Monday, GM reported it was investing $seventy five million, like “in-sort contributions that have by now been offered,” in Lordstown Motors as aspect of the funding deal.

With the deal, Lordstown joins a variety of firms that have opted to list by merging with an by now public SPAC rather than by a additional standard public offering. Virgin Galactic, in April, lifted $720 million by a SPAC listing with Chamath Palihapitiya’s Social Cash Hedosophia Holdings.

The funding deal is anticipated to be finished in the fourth quarter of 2020. DiamondPeak is modifying its title to Lordstown Motors and modifying its ticker to Experience. It is shown on the Nasdaq.

electric vans, GM, Lordstown Motors, PiPE, SPAC