Electric-vehicle maker Lion Electric Co said on Monday it would go public through a merger with blank-check company Northern Genesis Acquisition Corp NGA.N.
Lion Electric expects to receive about $500 million of net cash proceeds from the deal, it said, adding the combined company was expected to be listed on the New York Stock Exchange under the symbol “LEV”.
The company said it would use the proceeds to fund the expansion of its U.S. manufacturing capacity, the development of advanced battery systems and the construction of a battery system assembly factory.
Lion Electric’s shareholders are expected to hold about 70% of the combined company’s common equity after the deal is closed, assuming no redemptions from Northern Genesis’ shareholders.
The deal, which is expected to create a company with a market value of about $1.9 billion, is likely to close in the first quarter of 2021.
A blank-check firm, also known as a special purpose acquisition company (SPAC), uses proceeds from an initial public offering to buy a private company, typically within two years. The private company is then taken public.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Aditya Soni)