Electric vehicle (EV) startup Faraday Future has announced it is close to securing an agreement that would see it go public through a reverse merger with a special purpose acquisition company (SPAC).
Faraday CEO Carsten Breitfeld told Reuters his company is currently working on the reverse merger, and “will be able to announce something hopefully quite soon.”
The CEO declined to provide a timeline or specify who they were negotiating with on the deal.
If you’re unfamiliar, an SPAC, or a “blank cheque company” is a shell company that raises money through an initial public offering (IPO) to buy an operating entity, usually within two years. Reverse merger IPOs have been the flavour of the year in the EV marketplace.
Other EV related companies to go public or announce plans to go public through a SPAC include Nikola Motors, Lordstown Motors, Fisker, and XPeng Motors.
The EV charging network ChargePoint also recently announced they had secured a deal with Switchback Energy to go public later this year.