Canoo, a Los Angeles-based company developing breakthrough electric vehicles, is set to become a listed company via a merger with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company (SPAC). Upon the closure of the transaction, the combined operating company will be named Canoo Inc. and will continue to be listed on the Nasdaq Stock Market under the ticker symbol “CNOO.”
The business combination values Canoo at an implied $2.4 billion pro forma equity value, at the $10.00 per share price. The boards of directors of both companies have unanimously approved the proposed business combination, which is expected to be completed in the fourth quarter of 2020.
This announcement follows similar moves to list via merging with a SPAC by EV makers Fisker Inc., Lordstown Motors and Nikola Corp.
Canoo Co-Founder and Chief Executive Officer, Ulrich Kranz, says, “Today marks an important milestone of Canoo’s effort to reinvent the development, production and go-to-market model of the electric vehicle industry. Our technology allows for rapid and cost-effective vehicle development through the world’s flattest skateboard architecture, and we believe our subscription model will transform the consumer ownership experience.”
He adds: “We are excited to partner with Hennessy Capital and we are energized to begin our journey through a shared passion to deliver an environmentally friendly and versatile vehicle development platform to the market.”
Daniel Hennessy, Chairman & Chief Executive Officer of HCAC, states, “We are thrilled to partner with Canoo on their mission to reinvent urban mobility with a greener, simpler and more affordable portfolio of EV solutions. Unlike any other EV company, Canoo has created a go-to-market strategy that captures both B2C and B2B demand with the same skateboard architecture and technology that has already been validated by key partnerships such as with Hyundai. HCAC has an abiding commitment to sustainable technologies and infrastructure, and we are excited to serve as a catalyst to advance the launch of the Canoo vehicle offerings.”
Canoo expects to introduce its first model in 2022 that will be targeted at consumers in major urban markets. This lifestyle vehicle – eponymously named the canoo – leverages the company’s low profile skateboard architecture.
In addition, Canoo has designed a commercial delivery B2B vehicle with expected availability in 2023.