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KC company buys Canadian electric truck maker

By Madison Parry

Kansas City-based Northern Genesis Acquisition Corp. has received approval from the Securities and Exchange Commission to combine with Canadian electric truck manufacturer, Lion Electric Co. With an implied market capitalization of $1.9 billion, plans to merge have been months in the making. A final approval meeting will occur April 23.

A business combination deal months in the making is approaching final approval after review from the U.S. Securities and Exchange Commission this week.

Kansas City-based special-purpose acquisition company, Northern Genesis Acquisition Corp., first revealed its intent to combine with Canadian zero-emission vehicle manufacturer Lion Electric Co. back in December 2020.

In just under a month on April 23, a meeting will be held to discuss final approval of Northern Genesis’ merge plan.

The transaction is expected to deliver roughly $500 million USD in cash to Lion Electric. The amount is comprised of $200 million from the private placement and approximately $320 million of cash held in trust by Northern Genesis, according to a news release.

According to the release, Lion intends to use the proceeds to fund its growth strategy as well as the construction of a state-of-the-art vehicle manufacturing facility in the U.S.

The deal will be listed on the New York Stock Exchange with an anticipated implied market capitalization of $1.9 billion.

Lion currently has five U.S.-based facilities in operation, one in New York and the other four located in California, Washington and Arizona.

 

Posted 03/25/2020