SPAC shareholders approve merger to make Hyliion public (Update 2). Electric vehicle stocks are, or were until recently, red-hot. There are other startups too. Taherian: Who are some of the other players in EV sector? Write to Nicholas Jasinski at nicholas.jasinski@barrons.com. Tortoise Acquisition selected Hyliion from about 200 companies it considered as merger candidates. Once burned, twice shy; if Nikola was in fact deceptive, companies like Fisker will face a much steeper credibility challenge with investors. For example, Wrightspeed’s engineering team has developed a patented lightweight range-extended technology; that means the trucks can drive longer distances, resulting in more flexibility to the customer; the lighter weight means more payload capacity, which means the fleet customer can get more revenue.
The Norwegian sovereign wealth fund, which is the largest in the world with over $1 trillion in investments, announced they would stop investments in fossil fuel companies. A merger target is pending. Over 100 SPACs are currently on the market, with close to $40 billion in their war chests. Fisker ran into various problems including defective batteries from its supplier, a hurricane that wrecked the supply chain, and management disagreements over its growth strategy. Nasdaq All of these things will create an enormous market for SPACs as the primary vehicle that tech companies [should] use to go public.”. In March 2020, the SPAC agreed to merge with Nikola Corp at an implied enterprise value of about $3.3 billion, having secured a $525 million private placement led by Fidelity. VectoIQ Acquisition The SPAC lane in the EV market is getting crowded with Fisker (NYSE:SPAQ), Canoo , Nikola (NASDAQ:NKLA) and Lordstown Motors all choosing the path. (SPAQ) both announced well received deals over the past month, with Hyliion and Fisker, respectively. “We thought that by going with a SPAC we might leave some value on the table, but we also knew that it would take much longer to [do a traditional IPO,]” says Nikola CFO Kim Brady. Fisker also stumbled previously, though to that leader’s credit, nothing about it was kept from shareholders. Click for more FreightWaves articles by Alan Adler. Our Story. Hyliion makes an electric axle that converts diesel-powered trucks to electric hybrids. Special-purpose acquisition companies, or SPACs, have made a splash in 2020. “We’ve studied SPACs across the entire market,” Cubbage said. Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for Trucks.com. Required fields are marked *. On Monday, two and a half weeks after a blistering report from short seller Hindenburg Research and the Sept. 21 resignation of founder and Executive Chairman Trevor Milton, Nikola shares traded at $18.94. Editor’s Note: Updates with closing stock price Monday and clarifies registration of PIPE shares. You can reach him on Twitter at @irbezek.
“As an investor, what excites me is a quick profitability of the investment case being achieved.”, Hyliion takes reverse merger path to public trading, Nikola, Hyliion defend divergent paths to zero-emission trucking, 5 Hyliion questions with former DOT Secretary Andy Card. In the pre-Nikola scandal world, there’s a good chance SPAQ stock would have continued cruising higher ahead of its merger with Fisker. That is what is happening with startup electric truck maker Nikola Corp. (NASDAQ: NKLA). Fisker has not had a dramatic debut compared to some of the other EV companies which have doubled, tripled, or more since they started trading. After the reverse merger with VectoIQ Acquisition Corp VTIQ.O, the combined company will be named Nikola Corp and be valued at more than $3.3 billion, Nikola said. Nikola founder and Executive Chairman Trevor Milton resigned last Monday. Hyliion receives $560 million raised by Tortoise in an initial public offering (IPO) and a sale of discounted shares through a private investment in public equity (PIPE). One of the key standard metrics is emissions. SPACs are all the rage on Wall Street this year, with 112 of them filed as of Friday. “And the founder gets enormous flexibility in designing their board, lockups, and more.
In SEC filings, Hyliion said it expects to generate $8 million in revenue in 2021, rising to $344 million in 2022 and $1 billion in 2023. Commercial vehicles are 4% of vehicles on the road but account for 30% of on-road emissions. When running on renewable natural gas made from organic waste, the ERX will emit negative carbon emissions. The Tortoise SPAC founders agreed to hold their shares for a year. Taherian: This seems a crowded field. Tortoise is in the process for another special purpose acquisition company (SPAC). From the perspective of those companies, the lower dilution and better alignment of incentives unfolding in higher-quality corners of the SPAC market is creating an increasingly attractive alternative to the traditional IPO. They're also tackling the SUV and pickup truck market. When we saw this business plan and its path to mass production, we dropped everything and tried to get a deal with Healy.”. Henrik Fisker founded Fisker Automotive in 2007, and it debuted its first luxury plug-in EV in 2008. Investors and financial markets are pushing for this as well. They're not worried about whether the airbags or the brakes will work. Come here about e-commerce, reverse logistics, last mile strategies, and more! Every weekday evening we highlight the consequential market news of the day and explain what's likely to matter tomorrow. Additionally, the merger with Fisker hasn’t closed yet, and Fisker is still far from profitable vehicle production. ET, this one day virtual event will be full of in-depth analysis and lessons from leaders across supply chains. We're also keenly watching Volvo, which expects to have some trucks available later this year.
It also alleged that Nikola doesn’t develop its own proprietary technology. Hindenburg’s report made various claims about CEO Trevor Milton’s background and resume. Landis: There are several other players to watch.
After years of development, Fisker is now ready to present its new and hopefully improved vehicles to market. Wrightspeed’s strategy was to focus initially on the powertrain. The deal valued Nikola at $3.3 billion before proceeds, and included the $237 million in VectoIQ’s trust, plus a $500 million private investment in public equity, or PIPE, anchored by several institutional investors including mutual fund giant Fidelity.
Fifty-five SPACs have already gone public this year, raising $22.5 billion in proceeds—with another 22 SPACs on file to IPO in the coming weeks, according to SPAC Insider.That compares with 2019’s 59 IPOs and $13.6 billion in proceeds—both previous records. In 2020, companies have presented SPACs as a better and cheaper way to go public. “I think if we do a good job executing the business plan, the stock will take care of itself,” said Cubbage, whose private equity fund owns 8.7% of Hyliion, or 12 million shares, worth about $533 million as of Friday. Social Capital Hedosophia Holdings, The CyberTruck has a unique futuristic design.
Social Capital Hedosophia Holdings II That’s especially true in the current backdrop of market volatility from a growing coronavirus pandemic, the coming presidential election, and an uncertain economic outlook. When VectoIQ’s SPAC merged with Nikola in June, Nikola became a publicly traded company, and Girsky joined its board.
An error has occurred, please try again later. Benchmark’s Bill Gurley, another noted venture-capital investor, also wrote in a recent post that he sees a trend toward more companies going public via SPAC mergers. We've detected you are on Internet Explorer. But SPACs used to be associated with shady and unscrupulous executives. © Copyright 2020, All Rights Reserved, FreightWaves, Inc. Last Mile Logistics Virtual Summit starts Thursday! Since it appears they'll be focusing on all-electric models, they may be challenged to meet demand for longer range uses. Hyliion takes reverse merger path to public trading, 5 Hyliion questions with former DOT secretary Andy Card. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. © Copyright 2020, All Rights Reserved, FreightWaves, Inc. Last Mile Logistics Virtual Summit starts Thursday! A lot of shareholders trade in and out of the stocks with greater velocity. SPAQ stock initially popped from $10 to $16 on the merger announcement but hasn’t done much since then. This copy is for your personal, non-commercial use only. He founded private equity firm Lightfoot Capital Partners and was chairman and CEO of Arc Logistics Partners GP, purchased by Zenith Energy in December 2017. At Friday’s closing price of $44.39, that stake is worth more than $1.5 billion. Your email address will not be published. ... [+]. Read More: Read Barron’s latest cover story on how to invest in SPACs. Recent trouble at Nikola Corp. (NASDAQ: NKLA) is a cautionary tale of what can happen to a startup under the glare of public scrutiny. Three days after its public debut following a SPAC merger in June, shares traded intraday at $93.99. This allows fleet owners to easily drop in Wrightspeed’s technology to repower their existing fleets. “Until the music stops and the conga line of potential short sellers return to their seats, total shares shorted should remain constant,” Dusaniwsky said. Companies will be required to report their emissions and that transparency will drive them to reduce their emissions to stay competitive. For the last 10 years, I've also been an Adjunct Professor at UC Davis Graduate School of Management, teaching international finance and international business. One, if the claims of fraud are true, it will be a major black eye for the electric vehicle industry. Spartan is the company merging with EV firm Fisker. II (IPOB) and Virgin Galactic Holdings Three days after its public debut following a SPAC merger in June, shares traded intraday at $93.99. A SPAC will often focus on a specific industry or region. That is almost twice as many as of all of 2019. Article printed from InvestorPlace Media, https://investorplace.com/2020/09/nikola-scandal-could-slam-spartan-energy-spaq-stock-as-well/.
I'm also the mom of 2 great teenagers, and that reminds me that I don't have all the answers. How can investors analyze the differences? “We’ve seen a lot of IPOs with arguably inefficient pricing and some huge [opening day] pops.
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