Electric vehicle maker Fisker Inc announced Thursday it has completed a reverse merger with the blank check company Spartan Energy Acquisition Corp SPAQ.
What Happened: Both companies will merge in a business combination to create a new entity whose Class A common stock will list on the New York Stock Exchange under the symbol "FSR." Through the reverse merger, Fisker has gained access to $1 billion in cash inflows.
Spartan is funded by an affiliate of private equity giant Apollo Global Management Inc. APO.
With the funding and strategic tie-ups in place, CEO and Chairman Henrik Fisker remarked, “ We can now fully turn our attention to developing and launching the revolutionary, all-electric Fisker Ocean into the heart of the midsize SUV market.”
Earlier this month, Fisker and Magna International MGA partnered to manufacture the all-electric SUV model Ocean, and production is expected to commence towards the end of 2022.
Why Does It Matter: Special Purpose Acquisition Companies or SPACs are gaining more traction in the EV segment.
Lordstown Motors Corp merged with DiamondPeak Holdings Corp DPHC in August. Stocks of the merged entity are listed on Nasdaq under the symbol RIDE, which gained 5% during Thursday’s trading hours.
In early June, Nikola Corp NKLA announced a merger with SPAC VectoIQ.
Price Action: After a 2.61% fall during Thursday’s trading session, SPAQ gained 1.79% in the after-hours to close at $9.12.
See Also: Jim Cramer Compares Fisker And Its CEO To Nikola, Trevor Milton
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
