CIIG Merger Corp (NASDAQ: CIIC) stock is headed up in the market this morning, and for good reason. Stories are circulating surrounding the fact that the company has entered into an agreement to merge with a British electric van startup known as Arrival. Here’s what’s going on:
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CIIC Stock Pops On Arrival Merger
On Wednesday, Arrival said that it has agreed to merge with CIIG Merger Corp in an effort to get a United States listing. The goal is for the listing to come in with a valuation of around $5.4 billion.
As a special purpose acquisition company, or SPAC, CIIG runs its business by raising money on the stock market in order to buy operating companies.
As a result of the deal, Arrival should receive about $660 million. This figure includes the $260 million CIIG raised in its IPO last year as well as another $400 million raised from institutional investors.
Notably, one of these institutional investors, and the largest shareholder in the stock is BlockRock. The fund currently owns a 7.5% stake in the comapny.
Arrival is expected to trade on the Nasdaq under the ticker symbol, “ARVL.” The company plans to use the $660 million received through the transation to expand its production capacity in order to achieve growth. At the moment, the company has an order for 10,000 electric delivery vans from UPS with an option for another 10,000. So, production capacity will need to ramp up qucily.
Arrival is most well known as an electric vehicle startup. However, it’s not a one-trick pony. The company is also working to develop self-driving technologies. In fact, the UPS vans will be what the company calls depot autonomous. This means that the vehicles will be able to self drive in some instances. For example, when charging stations need to be cleaned, the vehicles will be able to move themselves out of the way, and back in place.
Moreover, all vehicles delivered to UPS will be autonomous ready, meaning the existing asset can be upgraded to be fully autonomous.
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This Is Big News
The news released this morning is big news for CIIG Merger Corp. and Arrival. Arrival will benefit from a listing on a major United States exchange. On the other side of the coin, CIIC and its investors will benefit greatly from all that Arrival brings to the table.
Importantly, Arrival isn’t just an electric vehicle startup. The company already has a major order from UPS, and is playing in the autonomous vehicle game. As technology continues to change the way we live, consumers are looking for easier ways to do just about everything. As such, the autonomous vehicle market is likely to be a massive one, creating yet another opportunity.
All in all, CIIC is a stock to pay close attention to.
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