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 Holdings Corp. (NASDAQ:DPHC) is committing a total of $675 million from its 2019 initial public offering and a private investment in public equity (PIPE) to fund production of LMC’s Endurance electric pickup truck.
A SPAC is created specifically to target a company for a friendly merger. DiamondPeak said it evaluated hundreds of companies before choosing LMC. The PIPE, which allows early investors to buy stock in DiamonPeak at a discount, is projected to raise $500 million, LMC said in a release Monday.
The combined company will remain listed on the NASDAQ under the ticker symbol RIDE.
The is a developing story. Come back to FreightWaves for updates.