Henrik Fisker plans to make a huge splash, planning new funding and a reverse merger, which is going to get shares of his electric vehicle company that is based in Los Angeles traded on the New York Stock Exchange. Amongst them are Leased products and shared partnerships.
Spartan Energy Acquisition corporation said on Monday that they have a business combination that will result in Fisker’s public listing by the fourth quarter of 2020. The Fisker merger costs as much as $2.9 billion on a proforma basis.
Fisker tells Forbes that they funded up to the production level fully. He furthers says that their business is a unique digital company. Besides that, they run on an entirely new technique of production of the hardware.
In comparison to Elon Musk’s Tesla TSLA 0.0 per cent, Henry Fisker employs it to help with prototypes in its initial days. He also said that their integration is not vertically.
In January at the CES in Las Vegas, the company went on to unveil its battery-powered Ocean SUV, a beautiful crossover made of recycled plastics and metals with a base price of $37,499, which is leasable for as little as $379 a month. Fisker’s strategy is a lease-only business model that allows customers to keep or return an automobile for years.
It plans to supply engines, batteries, and other parts to automakers from strategic collaborations. Furthermore, it will also subcontract production from established automotive plants. Another interesting twist: all five of Fisker’s other models are women apart from Henrik.
While sales of electric vehicles have slowly grown for most car manufacturers other than Tesla, the segment sets to be able to expand as markets including the China, European Union, and the U.S. states that implement the stringent zero-emission automobile regulations of California pursue to curb carbon pollution by obtaining more gasoline-powered vehicles of the road.
General Motors GM -1.5%, Volkswagen, Honda, Nissan, Honda, Volvo, and other major car manufacturers are all planning new electrical models and might reflect potential industrial partners for Fisker.
Henrik Fisker’s first startup attempt, Fisker Automotive, did not succeed despite having a stunning hybrid plug-in concept, low-cost, and new VC federal loan of $527 million after winning acclaim for his technical work at BMW and Aston Martin.
In conclusion, Fisker and Spartan’s $2.9 billion combined equity value based on a $10.00 per share PIPE price (private-public equity investment) that assumes the majority existing Spartan investors do not redeem their shares. Reverse mergers listings are usually cheaper than conventional IPOs, and hydrogen truckmaker Nikola Motor, as well as laser lidar leader Velodyne, have used them this current year.