NGA Stock will likely be the greatest Canadian Electric Vehicle Stock over the coming decade and in fact is the first SPAC stock I ever bought! Now this SPAC stock “special purpose acquisition company” will be merging this Q1 2021 with Lion Electric a maker of buses and class 6-8 vehicles ( Honestly Nikola Wishes They Were Lion Electric ) as they have agreements with Amazon that could extend out to 2030, Aside from that great news this merger with NGA stock will raise them the capital required to start building self manufacturing facilities in the US!
What’s The Hype About On Lion Electric Stock
I bought Tesla back in 2019 not even being closely aware of how popular the stock would become pocketing me over 700% in gains but now I hold no position in Tesla and after the Nikola scandals I have been hesitate on investing in the EV space until now. Lion electric stock is becoming wildly popular thanks to its unique approach of simple electric public transit vehicles, these vehicles don’t need to compete with speed or range as they just need to be able to deliver regular routes every day.
These vehicles average a top speed 55mph up to 150 miles which doesn’t sound impressive but for an inner city bus driver that has a 60-80 mile route at a cost savings of up to 80% over the life of the vehicle what’s not to like! Amazon is currently testing 10 of there vehicles to see if it can keep up, with a non binding contract to order 500 trucks a year until 2030 this alone is exciting news for Lion Electric.
If that isn’t enough hype for this SPAC stock we have a major shift in green energy policies with Biden coming into office January 20th along with the Canadian government offering incentives to EV makers well also charging a tax on carbon that will increase Canadian goods by 30% toward 2030. So if you had to make a bet on what industry the government would go green with first…. I’d bet public transit.
Lion Electric SPAC STOCK Merger With NGA Stock “Northern Genisis”
The pro forma implied market capitalization of the combined company is $1.9 billion, at the $10.00 per share PIPE subscription price and assuming no public shareholders of Northern Genesis exercise their redemption rights. The company is expected to receive approximately $500 million of net cash proceeds in connection with the transaction, comprised of $200 million from a PIPE and approximately $320 million of cash held in trust by Northern Genesis assuming no public shareholders of Northern Genesis exercise their redemption rights at closing.
The combined net cash proceeds will be used to fund Lion’s growth strategy, including the planned construction of a state-of-the-art U.S. based vehicle manufacturing facility, the continued development of advanced battery systems, the planned construction of a highly automated battery factory and other general corporate purposes.
- The Lion Electric Company (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, is combining with Northern Genesis Acquisition Corp. (“Northern Genesis”) (NYSE: NGA) and the combined entity is expected to be listed on the New York Stock Exchange (NYSE) under the new ticker symbol “LEV”.
- Pro forma implied market capitalization of the combined company of $1.9 billion.
- Transaction includes a $200 million fully committed private placement of common shares in Lion (PIPE).
- Proceeds will be used to fund Lion’s growth strategy, including the planned expansion of the Company’s U.S. manufacturing capacity, continued development of advanced battery systems, the planned construction of a highly automated battery system assembly factory and other general corporate purposes.
- Proposed transaction is expected to allow Lion to further solidify its current leadership in all-electric medium and heavy-duty urban vehicles.
- CEO – Founder Marc Bedard and Chairman Pierre Larochelle will be joined by Northern Genesis’ Ian Robertson and Chris Jarratt on a newly formed board of directors.
- The new ticker symbol will be NGAB.U
The existing shareholders of Lion will continue to hold their equity ownership in the combined company, and in some cases they will increase their equity ownership by participating, together with certain Northern Genesis officers and directors, in the PIPE. Following completion of the transaction, it is expected that Lion’s existing shareholders will hold approximately 70% of the combined company’s common equity assuming no redemptions from Northern Genesis’s public stockholders.
The Best SPAC Stock To Buy Right Now NGA?
In conclusion this SPAC stock has gotten very heated with an implied market valuation at merger of 6 Billion dollars give or take at the $30 pre merger price. In any other market I would be hesitant on purchasing shares but thanks to the absurdly large valuations that still exist even on Nikola stock, this has to be cheap right? Either way this is another pure electric vehicle play that’s all green, feels great, politically charged, has great management & makes Nikola like a joke! well enough said from me this is just one mans opinion and I am not a financial advisor this entertainment only .