This will be one of the most iconic SPAC stocks to merge in 2020 for many reasons including likely turning Thomas Healy, 28 the CEO into the youngest American billionaire! Hyliion will merge under the new ticker on Monday “HYLN” as the final votes will be done before market open!
Aside from making Thomas Healy wealthy investors have already seen gains this year of over 341% considering the hype surrounding the electric vehicle space, SHLL is already valued at 1.3 billion and this deal has an estimated enterprise value of 1.5 billion! Now that’s the expected base line something tells me hype will take over and we could see similar price action Nikola saw so lets review!
What HYLN Investor Should Look For!
First of all the high valuations investors and traders are expecting come from using Nikola stock “NKLA” as a catalyst that doesn’t always present future value but none the less. At the peak of Nikola after its merger was valued at around 30 billion with no expected revenue growth until 2024 where as Hyliion is expected to generate a revenue of $322 million in 2022 and a whopping $2.1 billion in revenue by 2024.
This news is extremely advantages for adopters of SHLL as not only a long term investment but perhaps a quick way to make some healthy profit before people ketch wind of Hyliion stock after its merger. Our prediction is if the company can avoid any negative headlines it may see Nikola type valuations pushing the stock to a price target of over $400 a share or a market cap of roughly 10-15 billion!
What Share Holders Will be Voting On.
Additionally, Tortoise Acquisition shareholders will also be required to vote on the following proposals:
- To increase the number of authorized shares of Class A Common Stock from 200,000,000 shares to 250,000,000 shares
- The issuance (or reservation for issuance in case of pre-merger options) 100,000,000 shares of Class A Common Stock in the business combination
- NYSE Proposal (a): The issuance and sale of 30,750,000 shares of Class A Common Stock in the private offering of securities to certain investors in connection with the business combination
- NYSE Proposal (b): The issuance and sale of 30,750,000 shares of Class A Common Stock in the private offering of securities to certain investors in connection with the business combination
- NYSE Proposal (c): The issuance and sale of 1,750,000 forward purchase units, consisting of 1,750,000 shares of Class A Common Stock and warrants to purchase 875,000 shares of Class A Common Stock to Atlas Point Energy Infrastructure Fund
- To consider and vote upon a proposal to approve and adopt the New Hyliion 2020 Equity Incentive Plan
- To consider and vote upon a proposal to elect two directors to serve until the 2021 annual meeting of stockholders, three directors to serve until the 2022 annual meeting of stockholders, and two directors to serve until the 2023 annual meeting of stockholders
“The pro forma implied market capitalization of the combined company is over $1.5 billion, at the $10.00 per share PIPE subscription price and assuming no public shareholders of Tortoise Acquisition Corp. exercise their redemption rights. The company will receive $560 million of proceeds from an upsized $325 million PIPE, along with cash held in trust assuming no public shareholders of Tortoise Acquisition Corp. exercise their redemption rights at closing.”
In Conclusion For HYLN Stock
The world is heading toward natural energy with companies the size of Exon mobile even beginning to transition. This is our biggest reason to see many investors flood into the early adopters and first to market companies. This has been the year of SPAC stocks “special purpose acquisition companies” after watching SPCE, NKLA & others go to the moon and back it will be neat to watch this unfold tomorrow, so keep your eyes peeled even if your not an investor as it will be iconic.