AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Stocks of special purpose acquisition company (SPAC) Northern Genesis Acquisition Corp (NYSE:NGA, NGA:US) have been rallying for a while now in the wake of the latest SEC filing released by Lion Electric Co last week (December 31).
The big news in the SEC filing was the confirmation of a previously announced deal between tech giant Amazon Inc (NASDAQ:AMZN, AMZN:US) and The Lion Electric Company, which is set to acquire the SPAC in a reverse-merger.
Northern Genesis Acquisition Corp stocks shot up nearly 16 per cent on Wednesday, January 6, and over 33 per cent year-to-date.
©Kalkine Group 2021
Key Highlights of the Lion Electric-Amazon Inc Deal
- Quebec-based Lion Electric Company, which manufactures electric-fueled school and transit buses and medium- to heavy-duty electric trucks, signed a master purchase agreement (MPA) with Amazon Logistics Inc in June last year.
- According to the MPA, the Canadian company was set to sell about 2,500 Lion 6 and Lion 8 electric trucks to a previously unnamed “specified customer”.
- The deal requires Lion Electric Company to deliver up to 500 EV trucks every year to Amazon Logistics between 2021 and 2025.
©Kalkine Group 2020
- Between 2026 and 2030, Lion Electric will have to provide more than 500 EV trucks per year, or 10 per cent of its manufacturing capacity, to Amazon.
- As per the SEC filing, the Silicon Valley giant has ownership options to own nearly 20 per cent stake in Lion Electric in the future.
Lion Electric Company IPO
The electric vehicle company plans to get publicly listed via its reverse-takeover deal with Northern Genesis Acquisition Corp by the end of the first quarter of 2021.
The merger will reportedly generate a net cash of about US$ 500 million for Lion Electric.
Once merged, the combined company is expected to get listed on the New York Stock Exchange.
Its stocks will trade under the ticker of “LEV”.
