Hyzon agreed to go public by merging with blank-check company Decarbonization Plus, a deal that values the fuel-cell startup at about $2 billion.
The Rochester, N.Y., company will receive as much as $626 million of proceeds from the transaction, including $400 million from a private investment in public equity, or PIPE, at $10 a share, the companies said in a statement.
The pro-forma equity value of the deal at $10 a share is $2.7 billion.
The companies expect the deal to close in the second quarter, subject to conditions including a vote of holders of Decarbonization Plus.
"Deliveries of Hyzon fuel cell powered heavy trucks to customers in Europe and North America will occur this year, well ahead of our competitors," Chief Executive Craig Knight said in a statement.
"[And] our committed sales pipeline is proof that the world is truly recognizing the need to develop innovative solutions to mitigate climate change and accelerate efforts to move the world economy down the path to net-zero emissions."
Hyzon makes hydrogen-powered big rigs, buses and coaches. The sector has seen increased interest since Nikola (NKLA) went public in June through a SPAC merger with VectorIQ Acquisition.
In July, Hyzon said it planned a new plant in the Netherlands. It also has manufacturing activities in Shanghai and operations elsewhere in Asia and Australia.
Meanwhile, Decarbonization Plus raised about $226 million in an initial public offering in October. The company is backed by the New York private-equity firm Riverstone Holdings.
Decarbonization shares at last check were down 3.7% at $17.11.
SPACs have recently picked up in popularity since they enable companies to go public without having to go through the regulatory process of a traditional IPO.
Mergers through SPACs surged last year, accounting for half of IPOs this past year, according to SPAC Analytics.
Check out the TheStreet's SPAC merger tracker here.