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Source: DiamondPeak Holdings Corp. Investor Presentation
The recent flurry of funding into the Electric Vehicle (EV) market has been unprecedented. Much of the momentum has been propelled by a surge in Tesla's (TSLA) share price and the increased use of Special Purpose Acquisition Companies or "SPACs" so far this year. Companies like Nikola (NKLA), Hyliion, Inc. (SHLL) and Fisker (SPAQ), which have been working towards bringing their versions of next generation EV's to market, are now flush with capital and have the potential to fulfill their promises for the first time. The investment of billions of dollars into the development of new EV's will accelerate the transition to an electric-centric future in the transportation industry, offering consumers greater options to choose from at more competitive price points.
The announcement of the next major financing transaction in the EV space has been imminent. As some, including us, predicted, this prophecy came to fruition through the August 3, 2020 announcement of DiamondPeak Holdings Corp. (DPHC), a $250 million SPAC, merging with Lordstown Motors Corp., alongside a simultaneous $500 million investment at an implied pro forma equity value of $1.6 billion and enterprise valuation of $965 million.
The deal is expected to close in the fourth quarter of this year, at which point the combined company will trade under the ticker symbol "RIDE." Through the transaction, the company will have $675 million to fund development of its innovative in-wheel electric hub motor design as well as its flagship Endurance model, a full-size electric pickup truck
