Another Electric Vehicle Stock Comes to Market: Fisker to Go Public Via a SPAC

The wait is over. Following what Reuters characterizes as a "a bidding war among blank-check companies," Fisker, a California-based electric vehicle (EV) maker, has opted to go public with Spartan Energy Acquistion (NYSE: SPAQ), a special purpose acquisition company. News of the transaction is not surprising, since rumors of a partnership between the two companies surfaced last week. The transaction -- similar to that which Nikola (NASDAQ: NKLA) used to go public -- is expected to be completed in the fourth quarter of 2020.

According to the terms of the transaction, Fisker will receive gross proceeds of $1 billion, which the company will use to help finance operations as it strives to bring its first vehicle, the all-electric luxury SUV, Fisker Ocean, to production in 2022. At the $10 per share "private investment in a public entity" price, the merger has a pro forma equity value of $2.9 billion.

Image source: Fisker.

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Source Fool.com