Fisker SPAC shares fall 20% after electrical carmaker studies delays in Volkswagen deal, Auto Information, East Auto Information
Detroit: Shares of the so-called blank-check firm merging with electrical carmaker Fisker fell 20% on Friday after it disclosed it might not shut a deal by the top of July to make use of Volkswagen AG’s electric-vehicle platform for its automobiles.
Spartan Vitality Acquisition Corp, backed by various funding supervisor Apollo World Administration Inc , introduced a deal this month to take Fisker public by means of a merger that valued the EV startup at $2.9 billion. The deal is anticipated to shut within the fourth quarter.
A blank-check firm, or SPAC, is a shell firm that raises cash by means of an preliminary public providing to purchase an working firm, usually inside two years.
Shares of Spartan have been buying and selling on Friday afternoon at $12.58, properly beneath the highs of $23.86 when the deal was introduced earlier this month. The inventory remains to be above Spartan’s IPO worth of $10.
Fisker mentioned on the time of the deal it was in talks with VW to make use of the German automaker’s MEB EV platform to hurry automobile growth and lower prices, but it surely disclosed the delay in paperwork filed on Friday with the U.S. Securities and Alternate Fee.
“We now have not achieved our aim of signing a cornerstone settlement with VW by the top of July 2020 as we beforehand anticipated,” Fisker mentioned within the submitting. “We look ahead to persevering with discussions with VW once more in September after the standard European summer season holidays.”
“We stay in dialog with a number of different potential (automakers) and suppliers that might have the ability to match inside our distinctive enterprise mannequin and we imagine will allow us to enter into definitive manufacturing and provide agreements earlier than year-end,” the corporate added.
The Spartan deal will present Fisker with $1 billion in gross proceeds. Fisker mentioned within the SEC submitting that it’s going to use these funds to launch its Ocean SUV by late 2022, adopted by a super-sports sedan, a sports activities crossover and a pickup truck by 2025.
Fisker beforehand mentioned it was in talks with different corporations, together with Magna Worldwide Inc, about constructing the SUV.
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