Mon. 10:49 a.m.: LMC becoming public company, announces merger with acquisition company
LORDSTOWN — Lordstown Motors Corp. and New York-based Diamond Peak Holdings Corp., a special purpose acquisition company, announced today a definitive merger agreement that will result in the electric truck startup to a be a publicly listed company.
About $675 million in gross proceeds that are expected from the transaction will be used to fund production of the battery-powered Endurance pickup truck.
The deal includes a $500 million fully committed private investment in public equity (PIPE), which includes investments of $75 million from General Motors. Other investors include Fidelity Management & Research Company LLC, Wellington Management Company LLP, Federated Hermes Kaufmann Small Cap Fund, and funds and accounts managed by BlackRock.
The implied equity value of the new company, which will remain named Lordstown Motors Corp., is $1.6 billion.
The transaction is expected to close in the fourth quarter of this year. Lordstown Motors’ stock is expected to remain listed on the NASDAQ and trade under the ticker symbol, “RIDE.”