Auburn Hills-based electric vehicle maker Electric Last Mile Solutions Inc. announced Friday it plans to go public through a reverse merger with blank-check company Forum III Corp. in a deal that values the startup at $1.4 billion.
The deal provides $379 million in gross proceeds to Electric Last Mile with $155 million coming from private investors BNP Paribas Asset Management Energy Transition Fund and Jennison Associates LLC, the company said in a press release.
Forum III was formed a shell company to raise funds from an initial public offering to buy Electric Last Mile. Forum went public in August and raised $250 million. The deal for Electric Last Mile is expected to close in the first quarter of 2021 and Electric Mile will be listed on the NASDAQ under the ticker ELMS.
The company is plans to launch a small electric delivery van, called the UD-1, in the third quarter of next year. The company says it has logged 30,000 preorders for its van, representing more than $1 billion in sales.
Electric Last Mile is expected to manufacture the vans out of a former General Motors Hummer plant in Mishiwaka, Ind., that the company is acquiring from China's Chongqing Sokon Industry Group Stock Co. Ltd. following completion of the deal, Reuters reported. The plant has capacity to produce 100,000 vehicles annually with plans to build 4,100 UD-1 vans by the end of 2021, Reuters reported. The UD-1 has a starting price of $32,500 and a range of 150 miles before requiring a recharge.
Electric Last Mile was founded by Jason Lou, former CEO of Ford China and Key Safety Systems before it was acquired by China's Ningbo Joyson Electronic in a $920 million deal in 2016, and James Taylor, former CEO of GM's Hummer brand and former CEO of electric car maker Karma Automotive.
Taylor will serve as the company's top executive. Lou is the currently the company's chairman. It's unclear whether he'll retain that role after the deal closes.
"electric" - Google News
December 11, 2020 at 09:08PM
https://ift.tt/3oJ6WBj
Auburn Hills electric van maker Electric Last Mile to go public in $1.4 billion reverse merger deal - Crain's Detroit Business
"electric" - Google News
https://ift.tt/2yk35WT
https://ift.tt/2YsSbsy
Bagikan Berita Ini
0 Response to "Auburn Hills electric van maker Electric Last Mile to go public in $1.4 billion reverse merger deal - Crain's Detroit Business"
Post a Comment