Electric work vehicle maker Lordstown Motors Co. will become a public company, as it has agreed to be acquired by special purpose acquisition company (SPAC), or blank-check company DiamondPeak Holdings Corp. in a deal that implies a $1.6 billion equity value for Lordstown. That sent DiamondPeak's stock soaring 17% in active premarket trading. Trading volume topped 790,000 shares, already more than the full-day average of about 110,000 shares. The combined company will remain listed on the Nasdaq exchange, but the ticker symbol will change to "RIDE" from "DPHC" when the deal is completed, which is expected in the fourth quarter of 2020. Lordstown's flagship Endurance pickup truck has received more than 27,000 preorders, which represents more than $1.4 billion in potential revenue. DiamondPeak's stock has been stable over the past year through Friday, as it has gained 4.3% while the S&P 500 (S&P:SPX) has advanced 11.6%.
Aug. 3, 2020, 8:03 a.m. EDT