Lion Electric Eyes Reverse Listing
|Photo credit: Lion Electric|
Lion Electric, a maker of electric trucks that’s secured customers including e-commerce giant Amazon, is in talks to go public by the way of a reverse merger with blank-check firm Northern Genesis Acquisition Corp, according to a report [paywalled] by Bloomberg. Northern Genesis is a newly-formed blank-check firm that raised $300 million from its market debut just in August and is now targeting to raise an additional $500 million to fund a Lion Electric merger, Bloomberg reports.
Lion Electric is a Canadian company that makes heavy electric vehicles such as trucks and school buses. In September, it reached an agreement to supply 10 electric trucks to e-commerce giant Amazon, which is increasingly adopting the use of emission-free vehicles for its outsized logistical operations. Still private, Lion Electric is controlled by Power Sustainable Capital, a subsidiary of financial services firm Power Corp. of Canada.
It seems Lion Electric is seeking a reverse merger to raise funds for its expansion. If so, it’ll join a herd of at least five other companies in the electric vehicle space to seek such a merger, among them Fisker, Lordstown Motors, Canoo, QuantumScape, and ChargePoint. This year has been a record for the debut of blank-check firms and as a result spurred interest from a record number of merger targets.
According to Bloomberg, Lion Electric is targeting a valuation of $2 billion+ in its planned reverse listing.