Based in california Fisker (FSR) finalized its merger with Spartan Energy on Thursday, after Spartan shareholders approved the merger on Wednesday.Spartan Blank Check Company, backed by a private equity firm Global management of Apollo (APO), announced a deal for automaker Fisker in July. The deal valued Fisker, which manufactures electric vehicles, at $ 2.9 billion.
Fisker expects to have $ 1 billion in cash to fund the development of its first vehicle, the Ocean luxury mid-size SUV. He will manufacture this electric vehicle with Magna International (MGA), targeting a launch in the fourth quarter of 2022.
According to reports, the Ocean will be assembled in Europe and is expected to cost around $ 37,499.
Henrik Fisker started the eponymous company in 2016. This follows the bankruptcy of a previous company. The now defunct company produced a luxury plug-in hybrid electric car from Fisker. However, the company discontinued the Karma EV due to poor sales.
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Fisker Stock, Electric Car Stocks
At the close of trading, Fisker shares rose 13.2% to 10.14 on the stock exchange today. Among other stocks of electric cars, Tesla (TSLA) lost 5.5% on Friday. Nio (NIO) lost 4.4%.
Fisker stock goes public in a hot electric car market, fueled by the surge in Tesla shares.
Nikola (NKLA) paved the way for an IPO through deals with a blank check or a special purpose acquisition company (SPAC). Thereafter Hyliion Holdings (HLYN) et Lordstown engine (RIDE) also went public via blank check agreements.
Blank check companies have grabbed electric car startups as investors hunted for the next Tesla.
A SPAC company is a shell entity without commercial operations. He is trained specifically to raise capital to buy an existing business.
Find Aparna Narayanan on Twitter at @IBD_ANarayanan.
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