Lordstown Motors and blank check DiamondPeak Holdings has agreed for establishing a new public company in a deal that values the electric pickup truck start-up with the offering of upto $1.6 billion.
The deal will be closed in the fourth quarter upon which the combined company will be called Lordstown Motors Corp. New company will trade on the Nasdaq with “RIDE” as the ticker symbol.
Lordstown is working on a new full-size electric pickup truck named Endurance and last year appoionted Rich Schmidt as a new chief production officer who was a former director of manufacturing at Tesla Inc.
DiamondPeak Holdings is a blank-check company that being a shell company raises money through an initial public offering to buy an operating company and bound to complete the process of acquiring within two years. While this year many players of the electric vehicle industry like Nikola Corp and Fisker have either gone public or have the plans to merger with blank-check companies.
The company has aim to set truck for U.S. commercial fleet market and its initial production is projected to complete in second half of 2021. One electric charge of Endurance trucks will have range of 250 miles drive and the company expects $45,000 as price tag by including net of a federal tax credit. Endurance has already received the pre-orders of worth $1.4 billion
Total gross proceeds to achieve from the deal are about $675 million. Lordstown will use the proceeds in the production of the new truck.