Electric vehicle maker Fisker Inc announced Thursday it has completed a reverse merger with the blank check company Spartan Energy Acquisition Corp (NYSE:SPAQ).
What Happened: Both companies will merge in a business combination to create a new entity whose Class A common stock will list on the New York Stock Exchange under the symbol "FSR." Through the reverse merger, Fisker has gained access to $1 billion in cash inflows.
Spartan is funded by an affiliate of private equity giant Apollo Global Management Inc. (NYSE:APO).
With the funding and strategic tie-ups in place, CEO and Chairman Henrik Fisker remarked, “ We can now fully turn our attention to developing and launching the revolutionary, all-electric Fisker Ocean into the heart of the midsize SUV market.”
Earlier this month, Fisker and Magna International (NYSE:MGA) partnered to manufacture the all-electric SUV model Ocean, and production is expected to commence towards the end of 2022.
Why Does It Matter: Special Purpose Acquisition Companies or SPACs are gaining more traction in the EV segment.
Lordstown Motors Corp merged with DiamondPeak Holdings Corp (NASDAQ:DPHC) in August. Stocks of the merged entity are listed on Nasdaq under the symbol RIDE, which gained 5% during Thursday’s trading hours.
In early June, Nikola Corp (NASDAQ:NKLA) announced a merger with SPAC VectoIQ.
Price Action: After a 2.61% fall during Thursday’s trading session, SPAQ gained 1.79% in the after-hours to close at $9.12.
See Also: Jim Cramer Compares Fisker And Its CEO To Nikola, Trevor Milton