Canoo To Go Public, Bollinger To Expand

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Cars

Published on August 18, 2020 |
par Steve Hanley

Aug 18, 2020 by Steve Hanley


Special purpose acquisition company. Keep this sentence in mind, because this is the new financial vehicle companies are using to go public while bypassing many of the restrictions the SEC places on “normal” IPOs. In theory, investors are pouring a pile of dough into an investment firm that specializes in buying other companies. In theory, these investors have no idea where their money is going.

Prototype Canoo, image courtesy of Canoo

These businesses are known as “blank check companies”. Instead of investors saying, “I want to buy XYZ Corp stock,” they’re just putting their money into an asset buying company and trusting its management to make wise decisions. So far this year, Nikola, Lordstown, and Fisker have all gone public in this way. Now Canoo, the innovative electric vehicle company that grew out of the ashes of Faraday Future, says it will do the same. Its shares will trade under the ticker symbol CNOO.

In this case, the buyer is Hennessy Capital Acquisition Corporation, founded by David Hennessy. According to TechCrunch, the deal will unlock around $ 600 million from investors like BlackRock and others, which will be used to bring Canoo’s innovative skateboard chassis into production. This skateboard is not, however, Canoo’s only innovation. The company says its vehicles will not be sold. Instead, customers will sign up for a subscription. Use it for as long as you need it; cancel at any time. This idea should leave many traditional auto company executives shaking their heads.

Canoo is getting a lot of interest these days. Hyundai has partnered with the company and says some of its future electric cars will be built on the Canoo skateboard. In theory, any type of body can fit on a Canoo skateboard, from a funeral hearse to a replica of a Mercedes 300 SL. Canoo calls them “toppers”. But the company relies heavily on a transport-as-a-service model for carpooling and carpooling passengers, as well as last-mile delivery vehicles in crowded cities.

Bollinger is growing

Class 3 Electric Bollinger Truck Chassis

Bollinger Class 3 Electric Truck Chassis, Image Courtesy of Bollinger

An electric car company do not Planning an IPO is Bollinger Motors, founded by Robert Bollinger, which makes tough electric pickup trucks and SUVs, both strong enough to pull a small freight train. It says it is moving its headquarters to Oak Park, Michigan to accommodate a doubling in the size of its staff, which has grown from 40 engineers to 80.

In an e-mail to CleanTechnicaRobert Bollinger said the move, “could not have come at a better time. We were in full swing with new engineers. It was especially difficult to keep everyone 6 feet from each other.

Each new IPO is an opportunity for those who missed the boat during Tesla’s phenomenal market rise to profit from the electric vehicle revolution. Last year NIO shares were selling for around $ 2.00. Today, they’re trading at around $ 14.00 each. But that doesn’t mean that every new company that goes public will see a similar gain in its share price. There is money to be made in shares of EV companies, but not all of them will be worth Tesla-type explosions. Invest wisely.


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Keywords: Bollinger, Canoo, IPO, SPAC, special purchasing acquisition company

About the Author

Steve Hanley Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or wherever the singularity can take him. You can follow him on Twitter, but not on social media platforms run by evil lords like Facebook.



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