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Summary
- Investors’ interest in Lion Electric Company was renewed after reports said that IKEA and its delivery partner Second Closet plans to deploy 15 of its electric truck in Canada this fall.
- The Canadian carmaker created quite a buzz in March following announcements that it will be constructing a battery manufacturing facility in Quebec.
- Lion Electric disclosed in a regulatory filing around January that it signed a deal with tech giant Amazon Inc in June 2020.
Canadian carmaker Lion Electric Company created quite a buzz in March 2021 following announcements that it will be constructing a battery manufacturing facility in Quebec.
Investors’ interest in this firm was renewed after reports surfaced on Monday, April 19, that Swedish furniture giant IKEA and its delivery partner Second Closet will deploy 15 Lion Electric trucks in Canada this fall.
As investors seek out ways to get a slice of this electric vehicle maker, we are here to tell you how you can invest in Lion Electric stocks.
How & Where To Buy Lion Electric Stocks and How Much Is Its Stock Price?
First things first, note that Lion Electric Company is a privately held entity as of now. The all-electric truck and bus manufacturer is, however, set to go public via a reverse merger with blank check company Northern Genesis Acquisition Corp (NGA:US, NYSE:NGA).
So, one possible way to invest in Lion Electric before it is public could be to buy Northern Genesis shares now and wait for the merger.
Lion Electric’s merger plans with the special purpose acquisition company (SPAC) were announced back in November 2020. The Saint-Jérôme-headquartered company said that the transaction would include a private placement in public equity (PIPE) financing of $200 million, and that the combined entity’s pro forma implied market capitalization would be $1.9 billion.
©Kalkine Group 2021
Fast forward to March this year, Lion Electric and North Genesis announced that US Securities and Exchange Commission (SEC) has declared Lion’s registration statement in regard to the merger as effective.
The SPAC is set to hold a special meeting on Friday, April 23, where its shareholders would be expected to approve the pending merger deal.
Northern Genesis Acquisition (NYSE:NGA, NGA:US) Stock Performance
Stocks of Northern Genesis spiked to an all-time high of US$ 35.25 on January 15, after Lion Electric disclosed in a regulatory filing that it signed a deal with tech giant Amazon Inc (NASDAQ:AMZN, AMZN:US) in June 2020.
Since then, the stock has dwindled by nearly 63 per cent to US$ 13.18, as of Tuesday’s closing.
1-year chart of stock performance of Northern Genesis (Source: EODHD/Others/Thomson Reuters)
At the moment, the SPAC stock reflects a year-to-date (YTD) decline of nearly 26 per cent. Northern Genesis recorded a share trading volume of nearly 1.4 million in the past month.
As per reports, Lion’s SPAC merger is expected to close by this quarter’s end. So, if all goes as per plans, investors may find Lion stocks listed on the New York Stock Exchange (NYSE) under the ticker of ‘LEV’ soon.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
