Polestar and Gores Guggenheim’s special purpose acquisition company (SPAC) expects to raise at least $850 million in their merger.
The companies foresee the merger closing on Thursday.
Once the merger closes, Gores Guggenheim’s NASDAQ listing will switch from GGPI to PSNY and start trading on the NASDAQ Exchange on Friday.
The two companies announced the SPAC plan last September.
In a release, Gores Guggenheim Chairman Alec Gores had this to say about the merger:
To have limited redemptions in this challenging macro environment is an incredible feat and speaks to the strength of Polestar‘s brand — as well as the high conviction our investors have in Polestar’s potential. We are proud of the momentum Polestar has built over the past several months, and we look forward to the expected closing of our business combination this week. (via Automotive News)
Polestar has good momentum going into the SPAC merger. The company closed a deal only a few months ago with Hertz to supply 65,000 vehicles.
The company is also looking to boost sales from 29,000 last year to 290,000 by 2025.
Last and possibly most important for investors, the company should reach financial break-even in 2023.
SPACs are averaging an 83 per cent redemption rate so far this year. So, the Polestar and Gores Guggenheim’s SPAC could be in for a successful SPAC merger.