Lordstown Motors, an American EV producer positioned in Ohio, is now on the verge of consummating its deliberate merger with the Particular Objective Acquisition Firm (SPAC), DiamondPeak (NASDAQ:DPHC). As soon as this enterprise mixture achieves closure, the shares of the mixed firm will checklist on the inventory change below the image RIDE.
As per the Form 8-K filed by DiamondPeak with the U.S. SEC as we speak, the SPACâ€™s shareholders will vote on the proposed enterprise mixture with Lordstown Motors on the 22nd of October:
â€śDiamondPeak Holdings Corp. (â€śDiamondPeakâ€ť) (NASDAQ:DPHC), introduced as we speak that it has known as a particular assembly of its stockholders (the â€śParticular Assemblyâ€ť) for October 22, 2020 to, amongst different issues, approve the proposed enterprise mixture (the â€śMergerâ€ť) with DiamondPeak, DPL Merger Sub Corp. (â€śMerger Subâ€ť), and Lordstown Motors Corp. (â€śLordstownâ€ť). Discover of the Particular Assembly was mailed on October eight, 2020 to stockholders of file as of the shut of enterprise on September 21, 2020 (the â€śFile Dateâ€ť). Because of issues concerning the coronavirus (COVID-19), DiamondPeak will maintain the Particular Assembly solely via distant communication and supply for the flexibility of stockholders to attend the Particular Assembly via distant communication.â€ť
Keep in mind that Lordstown Motors entered right into a definitive settlement to merge with DiamondPeak Holdings Corp. again in August. The deal is predicted to worth the mixed firm at $1.6 billion, with a PIPE funding of about $500 million. Lordstown will make the most of $675 million in gross proceeds from this deal to fund the manufacturing of its Endurance mannequin, an electrical pickup truck thatâ€™s anticipated to launch in 2021.
Readers ought to notice that the Workhorse Group (NASDAQ:WKHS) owns a 10 % stake in Lordstown, making it an integral beneficiary of this merger. In fact, as we speakâ€™s announcement couldnâ€™t have come at a greater time. As a refresher, the short-seller Fuzzy Panda Analysis accused Workhorse and, by extension, Lordstown Motors as we speak for appearing in a â€śfar worseâ€ť method than the embattled firm, Nikola Company. The brouhaha pertains to expectations of Workhorse turning into part of a $6 billion U.S. Postal Service (USPS) contract. As a refresher, the USPS is predicted to interact a number of corporations to be able to change its ageing fleet of supply automobiles. All the quantum of order is predicted to incorporate as many as 180,000 supply vans. Whereas corporations had been required to submit their proposals to the USPS by the 14th of July, a remaining choice is but to happen. Nonetheless, Workhorse stays one of many main contenders for the multi-billion-dollar contract.
At the moment, nonetheless, Fuzzy Panda Analysis printed a damning report, leveling a number of allegations towards Workhorse and Lordstown Motors. Primarily, the short-seller alleged that Workhorse was hyping up the advantages of successful the USPS contract although any benefit would probably be immaterial. Aside from casting aspersions on the flexibility of Workhorse to ship on its contractual obligations if it does win this contract, the short-seller alleged that Lordstown could be the prime beneficiary as Workhorse lacks the capability to construct USPS automobiles.
Lastly, the short-seller tried to shed a detrimental gentle on Lordstownâ€™s CEO, Steve Burns:
â€śEvaluating previous offers we uncover a CopyCat entrepreneur who mimics topical concepts, misleads traders, and has many years of destroying investor capital with the identical net of people. Burns is NOT the following Elon Musk however definitely is perhaps a way more nefarious model of Trevor Milton.â€ť
DiamondPeak shares are presently up over three % in prolonged after-hours buying and selling following as we speakâ€™s seminal announcement.