Traders have embraced electrical automobile shares and so they’re about to get an alternative choice as Lordstown has introduced plans to conduct a reverse merger with DiamondPeak Holdings Corp.
With out getting too technical, DiamondPeak Holdings is at present listed on the NASDAQ, as DPHC, and the reverse merger will successfully flip them into Lordstown Motors. In essence, it’s a shortcut to getting publicly listed.
A definitive merger settlement has already been signed and the transaction is anticipated to shut within the fourth quarter of this yr. At the moment, the corporate will nonetheless be listed on the NASDAQ however it can undertake the brand new ticker image of “RIDE.” It is a reference to the corporate’s motto of “Trip with Lordstown.”
Additionally Learn: Lordstown Endurance Debuts As America’s Electric Work Truck
Whereas Lordstown isn’t slated to launch the Endurance pickup till the second half of 2021, CEO Steve Burns mentioned “The financing that comes from being publicly listed is the final piece we wanted as we march in direction of manufacturing.” He went on to say, “We’re thrilled with the chance to construct Lordstown Motors right into a top-tier electrical truck firm that’s highly differentiated from the competition.”
Roughly $675 (£516 / €574) million of the gross proceeds shall be used to fund manufacturing of the Endurance. The corporate additionally revealed a $75 (£57 / €63) million funding by Basic Motors.
Apart from asserting the merger, Lordstown revealed they’ve already obtained greater than 27,000 pre-orders for the Endurance and famous this represents a possible income of greater than $1.4 (£1.1 / €1.2) billion.
Lordstown unveiled a pre-production prototype of the Endurance in June and the mannequin is a crew cab pickup that’s geared toward business customers. The mannequin prices $52,500 – earlier than incentives – and options 4 in-wheel motors that produce a mixed output of 600 hp (447 kW / 608 PS). They need to allow the truck to speed up from 0-60 mph (0-96 km/h) in 5.5 seconds and journey greater than 250 miles (402 km) on a single cost.