Investors have embraced electric vehicle stocks and they’re about to get another option as Lordstown has announced plans to conduct a reverse merger with DiamondPeak Holdings Corp.
Without getting too technical, DiamondPeak Holdings is currently listed on the NASDAQ, as DPHC, and the reverse merger will effectively turn them into Lordstown Motors. In essence, it’s a shortcut to getting publicly listed.
A definitive merger agreement has already been signed and the transaction is expected to close in the fourth quarter of this year. At that time, the company will still be listed on the NASDAQ but it will adopt the new ticker symbol of “RIDE.” This is a reference to the company’s motto of “Ride with Lordstown.”
Also Read: Lordstown Endurance Debuts As America’s Electric Work Truck
While Lordstown isn’t slated to launch the Endurance pickup until the second half of 2021, CEO Steve Burns said “The financing that comes from being publicly listed is the last piece we needed as we march towards production.” He went on to say, “We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition.”
Approximately $675 (£516 / €574) million of the gross proceeds will be used to fund production of the Endurance. The company also revealed a $75 (£57 / €63) million investment by General Motors.
Besides announcing the merger, Lordstown revealed they have already received more than 27,000 pre-orders for the Endurance and noted this represents a potential revenue of more than $1.4 (£1.1 / €1.2) billion.
Lordstown unveiled a pre-production prototype of the Endurance in June and the model is a crew cab pickup that is aimed at commercial users. The model costs $52,500 – before incentives – and features four in-wheel motors that produce a combined output of 600 hp (447 kW / 608 PS). They should enable the truck to accelerate from 0-60 mph (0-96 km/h) in 5.5 seconds and travel more than 250 miles (402 km) on a single charge.