Canoo said Tuesday that it’s joining two trends: An electric-vehicle maker with little to no cars delivered will go public and will do so through a reverse merger.
The Los Angeles company is combining with the special-purpose-acquisition company Hennessy Capital Acquisition (HCAC) - Get Hennessy Capital Acquisition Corp. IV Class A Report, which is listed on Nasdaq.
The combined company will be named Canoo and will continue to list on Nasdaq, under the ticker symbol CNOO.
The merger values Canoo at $2.4 billion, with a $10 share price and assuming no redemptions by HCAC's current public stockholders.
The new company will receive some $600 million, from a fully committed common-stock private investment in public equity offering of more than $300 million plus the about $300 million of cash held in trust assuming no redemption of HCAC's current holders, Canoo said in a statement.
The boards of Canoo and HCAC have approved the deal, which is expected to close in the fourth quarter.
Canoo says it has “designed the world's flattest modular skateboard platform that allows it to reimagine EV design, maximize usable interior space and support a wide range of vehicle applications.”
The skateboard architecture is “a unique, self-contained, independently drivable rolling chassis, which directly houses all of the most critical components of an EV,” Canoo said.
It expects to introduce the first model in 2022, which will be targeted at consumers in major urban markets.
It also has designed a commercial delivery B2B vehicle, which it expects to make available in 2023.
The company's statement didn't specify pricing for the consumer and commercial models.