Electric pickup truck maker Lordstown Motors announced today a new deal to go public through a reverse merger at a $1.6 billion valuation.
After the success of Nikola Motors orchestrating its own reverse merger on the public market earlier this year, several electric vehicle companies have announced similar plans.
That includes Fisker, Karma, and now Lordstown is adding itself to the list.
They announced today a plan to merge with DiamondPeak Holdings Corp. (“DiamondPeak”) (NASDAQ:DPHC), a publicly-traded blank check company.
Through the transaction, they plan to raise about $675 million to finance the production of its Endurance electric pickup truck.
The money comes mostly from a $500 million fully committed PIPE, which includes $75 million of investments by General Motors, who was critical in launching the new company which was built around the sale of the latter’s Lordstown factory.
Steve Burns, Founder and Chief Executive Officer of Lordstown, commented on the announcement:
“We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition. We are uniquely positioned to be a leader in the industry, with our first vehicle, the revolutionary Lordstown Endurance. Our all-electric full-size pickup truck delivers the equivalent of 75 miles per gallon and has been systematically engineered and competitively priced specifically for the large commercial fleet market, which includes companies in manufacturing, contracting, utilities, transportation and delivery, and agriculture, among others. Since its unveiling just over a month ago, the Endurance has been met with enthusiastic support, and to date, we have secured $1.4 billion of pre-orders. Our platform is rooted in sustainability, and the entire Lordstown team is committed to ensuring we contribute to a healthier planet for generations to come.”
Along with the announcement of the transaction, Lordstown Motors also confirmed having received “more than 27,000” reservations for the Endurance electric pickup since the unveiling in June:
“Lordstown unveiled the prototype of its flagship Endurance pickup truck on June 25, 2020, and to date, has received more than 27,000 pre-orders for the vehicle representing over $1.4 billion of potential revenue, primarily from commercial fleet customers.”
The company still claims that it will be first to market with an all-electric pickup truck during the second half of 2021.
Lordstown Motors expects the deal to close in the fourth quarter.