Friday, August 21, 2020

The World Cried Out For Yet Another Electric Vehicle Startup Offering Via SPAC, The Market Responded

From Reuters:

U.S. EV startup Canoo to go public at $2.4 billion valuation
Canoo Holdings Ltd, a U.S. electric vehicle startup already working with South Korea’s Hyundai Motor, will go public later this year at a value of $2.4 billion and aims to start delivering vehicles by the second quarter of 2022.

It has joined forces with a so-called special purpose acquisition company, or SPAC, and the combined company will be called Canoo Inc following the closing of the deal with Hennessy Capital Acquisition Corp IV (HCACU.O) in the fourth quarter. It will trade on the Nasdaq under the ticker symbol “CNOO,” the companies said.

Tuesday’s announcement comes as investors are looking to ride the global shift to EVs and echo the surging stock price of segment leader Tesla (TSLA.O).
A SPAC is a shell company that raises money through an IPO to buy an operating entity, typically within two years.

“A SPAC has for us a huge advantage because we can generate enough funding to accelerate our development process,” Ulrich Kranz, Canoo’s co-founder and chief executive, told Reuters....