Electric Last Mile Solutions is going public thanks to a special purpose acquisition company (SPAC) merger with Forum Merger III (NASDAQ:FIII) and FIII stock is heading higher on the news.
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Here is
about the Electric Last Mile SPAC merger.
- The deal will have Electric Last Mile Solutions merging with Forum Merger III and the new company taking on its name.
- This will also result in FIII stock changing to ELMS stock but it will still trade on the Nasdaq.
- Electric Last Mile Solutions will gain $379 million of gross proceeds from the deal.
- $155 million of this comes from a private investment in public equity (PIPE) and other financing anchored by institutional investors.
- Electric Last Mile Solutions plans to use the funds from the merger to operate its business and fuel growth.
- The SPAC merger deal implies a pro forma equity value of $1.4 billion for the combined company.
- The deal is set to close during the first quarter of 2021.
- Electric Last Mile Solutions is moving forward with plans to launch its Urban Delivery van in the third quarter of 2021.
- This will make it the “first electric Class 1 commercial vehicle in the U.S.”
- The company notes that it already has more than 30,000 preorders for the electric vehicle (EV).
- Electric Last Mile Solutions says its customers include “some of the largest fleet managers and dealers in the country.”
FIII stock was up 12.6% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
