Special purpose acquisition, or "blank check" company, Hennessy Capital Acquisition Corp. has jumped on the electric vehicle bandwagon, as it announced a reverse merger with EV maker Canoo Holdings Ltd. The deal will provide $600 million in gross proceeds to Canoo, which will use be used to support the production and launch of EVs featuring Canoo's "skateboard" technology. After the deal closes, the combined company will be named Canoo Inc. and the stock will be listed on the Nasdaq exchange under the ticker symbol "CNOO." Canoo's skateboard platform can support a wide range of business-to-consumer and business-to-business vehicle configurations. The deal comes at a hot time for SPACs, IPOs and EV, as the Renaissance IPO ETF (PSE:IPO) has rallied 27.9% over the past three months, while EV maker Tesla Inc.'s stock (NAS:TSLA) has more than doubled (up 133.7%) and the S&P 500 (S&P:SPX) has gained 14.7%.
Aug. 18, 2020, 9:34 a.m. EDT