EV company Lordstown has entered into a definitive agreement with DiamondPeak Holdings Corp. $DPHC, the combined company will remain on the NASDAQ under the ticker “RIDE”. Lordstown Endurance™ looks set to become the first full-size electric pickup truck designed to serve U.S. commercial fleet market with production expected in the latter half of 2021.
Approximately $675m of gross proceeds that are expected from the transaction will apparently be used to fund production of the Endurance and its innovative in-wheel electric hub motor design. Transaction includes a $500 million fully committed PIPE, which includes $75 million of investments by GM in addition to investment from institutional investors. The implied equity value of the combined company is around $1.6B.
The combined company Board will include Steve Burns, Founder and CEO of Lordstown, and David Hamamoto, Chairman and CEO of DiamondPeak. The transaction is said to close some time in the fourth quarter of 2020.
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