Shareholders of DiamondPeak Holdings Corp. did as anticipated Thursday and accredited the merger with Lordstown Motors Corp., a transfer that’s anticipated to inject $675 million into the startup to fabricate the battery-powered Endurance truck when the deal is closing.
Shareholders additionally accredited three different proposals relative to the merger: the constitution proposal, Nasdaq proposal and 2020 incentive plan proposal that mixed with blessing the merger are the ultimate steps towards Lordstown Motors turning into a publicly traded firm.
A spokesman for the Lordstown-based firm informed this newspaper “there are just a few formalities left to be accomplished” and extra data can be shared as soon as the merger is formally full and buying and selling particulars are finalized.
Lordstown Motors, within the midst of retooling its plant, the previous Common Motors meeting plant in Lordtown, is concentrating on the primary deliveries for the second half of 2022. The corporate hopes to increase manufacturing to 100,000 by 2024.
Lordstown Motors introduced in September it has 40,000 preorders for the truck, which has a sticker worth of about $52,000 earlier than tax credit. Barring any cancellations or delays, the preorders symbolize about $2 billion in income.
The brand new settlement requires Lordstown Motors to grow to be a wholly-owned subsidiary of New York-based DiamondPeak, a particular objective acquisition firm, or “clean test” firm, however retain the Lordstown Motors Corp. title.
Shares of the corporate’s inventory can be traded on the Nasdaq trade below the ticker “RIDE.”
The Nasdaq proposal, based on discover despatched to DiamondPeak shareholders, requires the issuance of 78.8 million shares of Class A standard inventory to Lordstown Motors stockholders; the issuance of as much as 50 million shares of Class A standard inventory to sure certified institutional patrons and accredited buyers at $10 per share; changing some Class A standard inventory to Class B frequent inventory; issuing as much as 4 million shares of Class A standard inventory upon the conversion of Lordstown Motors promissory notes; and entitling Brown Gibbons Lang and Co. — the Cleveland-based funding agency serving to Lordstown Motors increase capital — to purchase 1 p.c of the issued and excellent frequent inventory of DiamondPeak.
Shareholders additionally accredited increasing the dimensions of DiamondPeak’s board of administrators from 5 to 9, together with 5 nominated by Steve Burns, founding father of Lordstown Motors.
The board nominated Jane Reiss, Dale Spencer and Mick Kowitz as Class I administrators; Michael Gates, Angela Strand and Martin Rucidlo as Class II administrators; and David T. Hamamoto, DiamondPeak chairman and CEO, Keith Feldman and Steve Burns, Lordstown Motors founder and CEO, as CLass III administrators.
The businesses introduced the proposed enterprise mixture in October.
The brand new firm could have an fairness worth of about $1.6 billion.
DiamondPeak went public in 2019. It operates as a blank-check firm — a growth stage firm with no particular marketing strategy or with the marketing strategy of mergers and acquisitions.
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