What made the froth in transportation SPACs go flat?

Special purpose acquisition companies targeting startups to take public have not gone away. On the contrary, more than 500 SPACs are currently searching for targets across all sectors. But in almost all cases, SPACs that have completed mergers with transportation companies are performing more like risky investments than they did in 2020. 

What happened?

FreightWaves spoke on background to SPAC experts who agreed to share insights without attribution. They laid out several reasons for the...

https://www.freightwaves.com/news/what-made-the-froth-in-transportation-spacs-go-flat

Demystifying the comings and goings of SPACs

Special purpose acquisition company. It is such an unwieldy phase that it demands an acronym. And so these investment vehicles,  also called blank check companies and shell companies, are known as SPACs.

A SPAC is a way for a small private company, — often with no revenue — to access public markets and investment without going through a cumbersome initial public offering (IPO). 

SPAC-sponsored companies can talk about their projections for scaling the business and project revenue several years in...

https://www.freightwaves.com/news/demystifying-the-comings-and-goings-of-spacs

Xos Trucks may be next to go public via SPAC: Reuters

Electric chassis maker Xos Trucks Inc. is in talks to go public through a merger with a special purpose acquisition company (SPAC) that could lead to a valuation of $2 billion, Reuters reported Monday.

North Hollywood, California-based Xos makes a customizable chassis with the wiring, battery mounting and axle-mounting systems for medium- and heavy-duty electric trucks. Its customers so far include United Parcel Service (NYSE: UPS), armored truck company Loomis, and Japan’s Hino Motors Ltd., a...

https://s29755.pcdn.co/news/xos-trucks-may-be-next-to-go-public-via-spac-reuters

Laying PIPE: Additional cash raises valuations of SPAC targets

Electric vehicle and infrastructure startups continue to attract hundreds of millions of dollars from special purpose acquisition companies (SPACs) targeting business combinations and speedy public trading debuts.

Set aside the hype around the tens of billions invested in so-called blank-check companies. It is  pocket change compared to the trillions held by investment funds, venture capital and private equity, said Mark Saraiva, Cowen Inc. managing director and head of its transportation group.

“...

https://www.freightwaves.com/news/laying-pipe-additional-cash-raises-valuations-of-spac-targets

Breaking News: Electric pickup maker Lordstown Motors going public in reverse merger

Electric pickup truck startup Lordstown Motors Corp. (LMC) is going public through a reverse merger with a special purpose acquisition company (SPAC), the latest clean transportation company to take a fast-track to public trading.

Former Workhorse Group (NASDAQ: WKHS) CEO Steve Burns created LMC in 2019 with the purchase of a former General Motors plant (NYSE: GM) in northeast Ohio. GM is investing $75 million in LMC, including a mortgage loan to LMC and money for retooling the plant.

DiamondPeak...

https://www.freightwaves.com/news/breaking-news-electric-pickup-maker-lordstown-motors-going-public-in-reverse-merger

Hyliion takes reverse merger path to public trading

Hyliion hybrid tractor

Hyliion Inc., a startup maker of diesel-electric truck components, expects to begin publicly trading its stock around the end of the third quarter following a merger with a “blank check” company created specifically to find a marriage partner with high-growth potential.

The path is practically identical to one followed by startup electric truck manufacturer Nikola Corp., which went public on June 4. 

Tortoise Acquisition Corp. (NYSE: SHLL) was formed 15 months ago as a special purpose acquisition...

https://s29755.pcdn.co/news/hyliion-takes-reverse-merger-path-to-public-trading

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