Northern Genesis Acquisition Corp (NYSE: NGA) is rocketing in the market this morning, and for good reason. The company announced that it has entered into a merger agreement with the Lion Electric Company, exciting investors. Here’s what’s going on:
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NGA Stock Rockets On Merger News
In the press release, Northern Genesis Acquisition Corp said that it has entered into a merger agreement with the Lion Electrioc Company. Lion is the leading manufacturer of all-electric medium and heavy-duty urban vehicles. Following the merger, the combined company is expected to trade on the New York Stock Exchange under the ticker, “LEV.”
In the release, NGA said that the transaction includes a $200 million fully committed private placement of common shares of Lion and comes with an implied pro forma market cap of $1.9 billion.
NGA said that the proceeds from the PIPE financing will be used to fund Lion’s growth strategy. This growth strategy includes a planned expansion of the company’s manufacturing facility in the United States as well as continued development of advanced battery systems, planned construction of a highly automated battery system assembly factory and other general corporate purposes.
Finally, the company said that following the transaction, a newly formed board of drectors will include Marc Bedrad, CEO and founder of Lion, as well as Pierre Larochelle, Chairman of Lion, Ian Robertson, NGA Director and Vice Chair, and Chriss Jarrat, Vice Chair at NGA.
In a statement, Marc Bedard, CEO at Lion, had the following to offer:
This transaction marks an important milestone in Lion’s continued emergence as a market leader in the design, manufacturing and distribution of purpose-built, all-electric medium and heavy-duty urban vehicles. The business combination with Northern Genesis provides us with capital to fund Lion’s strategic initiatives, in addition to valuable expertise from Ian Robertson, Chris Jarratt and the Northern Genesis team.
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This Is Big News
There’s good reason investors are sending Northern Genesis Acquisition Corp stock through the roof this morning. With the merger, the company and its investors will be stepping into the electric vehicles market. That’s big news.
Think about it, Joe Biden will be the next President of the United States. That’s big news for any clean transportation or clean energy play. After all, Biden has been very outspoken with his views toward global warming and the need to reduce the global carbon footprint.
As a result, NGA and Lion will benefit greatly from future regulatory changes set into place by the Biden Administration. This includes potential grants, tax cuts, and incresed demand as a result of tax perks for consumers who take part in the transition to clena, green transportation and energy.
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