Lightning eMotors, an organization that electrifies commercial-vehicle fleets, has agreed to go public via a merger with GigCapital3 Inc., a blank-check firm.
The deal is predicted to generate gross proceeds of $125 million and offers Lightning eMotors a pro-forma fairness valuation of round $823 million, the businesses said Thursday in a statement. Bloomberg Information had reported the 2 corporations had been in talks to merge.
Shares of GigCapital3 jumped 22 p.c in premarket buying and selling Friday.
Lightning eMotors, previously often known as Lightning Hybrids, buys commercial-vehicle chassis from suppliers together with Ford Motor Co. and assembles the ultimate, electrical variations at its 250,000 square-foot facility in Loveland, Colo. It provides expertise to the vans, vehicles and buses that reduces their emissions to zero; it additionally offers a charging service.
The corporate mentioned in October it had greater than doubled its manufacturing house, ramped up manufacturing and doubled its workforce. It expects to succeed in annual manufacturing of 20,000 medium-duty business autos by 2025.
GigCapital3, led by government chairman Avi Katz, raised $200 million in a Might preliminary public providing.
The transaction is predicted to shut within the first half of subsequent yr, pending shareholder and regulatory approvals. The boards of each corporations have unanimously accredited the merger, the businesses mentioned. On completion of the deal, the corporate will probably be named Lightning eMotors Inc. and will probably be listed on the New York Inventory Alternate underneath the ticker image ZEV.