Canadian electric truck and bus manufacturer The Lion Electric Company said Monday it intends to go public through a special purpose acquisition company (SPAC) merger in a move that will help fund its first U.S. manufacturing facility.
Quebec-based Lion plans to combine with blank check company Northern Genesis Acquisition Corp. (NYSE: NGA) and then be listed on the New York Stock Exchange with the ticker LEV. It expects to raise about $500 million from the transaction.
It comes as Lion looks to ramp up capacity as it prepares to deliver its first battery-powered Lion6 and Lion8 trucks. The funding will help Lion build a facility in the U.S. and improve battery manufacturing.
“This transaction marks an important milestone in Lion’s continued emergence as a market leader in the design, manufacturing and distribution of purpose-built, all-electric medium- and heavy-duty urban vehicles,” Lion founder and CEO Marc Bedard said in a statement.
The deal is expected to close during the first quarter of 2021.
Lion Electric has been quietly building the first production models of its Lion6 and Lion8 battery-powered trucks. The company has an existing line of battery-powered electric school buses in service in the U.S. in Canada.
The Lion6 and Lion8 are targeting urban deliveries and have attracted orders from customers including Amazon and CN.
Lion Electric will join a growing list of companies going public via a SPAC merger, including Hyliion Holdings Corp. (NYSE: HYLN) and Nikola Corp. (NASDAQ: NKLA.) SPACs offer an alternative to traditional IPOs.
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