Image courtesy: Canoo
The EV startup from Los Angeles, Canoo, along with its $2.4 billion valuations, is going public. It is to garner enough money to bring its VW van to market through a deal with Hennessy Capital Acquisition Corp IV.
On Tuesday, the Electric Vehicle startup announced that it is merging with the special-purpose acquisition company. As soon as the deal gets complete, it will result for Canoo to be listed under ticker symbol CNOO on NASDAQ.
Canoo acquires SPAC or also known as the ‘blank check' in converting itself from being a private company to being public through accepting investments from public companies like HCAC. The deal between the two companies has made Canoo to effortlessly revert itself into a public corporation without going through the traditional IPO.
The Los Angeles-based startup will be the fourth company in 2020 who acquired the SPAC to become public alongside Nikola Corp., Lordstown Motors, and Fisker.
A $300 million raise in private investment in public equity led the EV startup to have about $600 million funds in producing and launching electric vehicles. The EV production will be under a subscription-only basis that will be on the road in 2021. Moreover, Canoo will be using the underlying skateboard technology to produce another vehicle cabins in 2023.
The birth of the company was in 2017, parented by Ulrich Kranz and Stefan Krause, which formerly called the company as Evelozcity. And in 2019, it was rebranded as Canoo along with its first vehicle in September of 2019.
Canoo’s initial launched vehicle adapts the style of the microbus, which uses the 'skateboard' technology. The chassis, which holds the electric drivetrain and batteries, is under the cabin of the minivan.
The 'skateboard' architecture made Canoo create a new partnership with the Hyundai Motor Group. It was in February when the skateboard design of Canoo was acquired by Hyundai and Kia electric vehicles, for future use.
On the height of the coronavirus pandemic, many of the industries are opting to close or sell their businesses, including one of your favorite pizza place, Pizza Hut.
Earlier in July, Pizza Hut’s largest U.S partner in the franchise has filed for Chapter 11 bankruptcy protection. This allows NPC International to operate while finding solutions to recover from its struggling market.
NPC runs 1,200 pizza franchise in the U.S along with nearly 400 Wendy’s chain. Based on the deal between Yum Brands Pizza Hut and NPC, around 300 of the pizza chain will stop its operation, and the 927 remainings will be put on sale.
“In the event, NPC executes a sale of its Pizza Hut business, Pizza Hut’s focus would be to ensure that new ownership brings to NPC’s Pizza Hut restaurants a strong capital structure, healthy balance sheet, commitment to operational excellence and growth mindset,” Pizza Hut Spokesperson stated to CNBC.
Most of the Pizza Hut locations that are subjected to closure are dine-in locations. It was noticeable in the past few years that deliveries and takeout from the pizza chain are becoming more popular than its dine-ins.
Deliveries and to-go orders escalated during the pandemic when people are opting to stay at home for health and safety. The pizza chain’s delivery weekly sales have reached its peak during the month of May for the past eight years.
According to reports, NPC has not made its final decision yet as to which Pizza hut locations will be closed or sold. However, it was stated that the employees that will be affected by the decision are transferring to other Pizza Hut branch, if possible.
It was in 1962 when NPC operated its first Pizza Hut franchise, and it was only in 1984 when NPC went public. However, in 2001, it went private again before it went to Eldridge Investment Holdings and Delaware Holdings in 2018.
There is no doubt that the new avenue for businesses to cope up with the changes caused by the pandemic is going virtual. Almost all industries are already making their way to the digital world using different platforms.
One of these digital platforms is Facebook, which has been making it easier for entrepreneurs by adding new useful features. One of such features is the Facebook Event feature, which allows monetization of events held online.
Starting today, events hosted on Facebook will now have an option to be monetized in several countries, including the United States and 19 others.
The Head of Facebook App, Fidji Simo, stated in a call with reporters that the new feature was supposed to be for in-person events. However, due to the pandemic and protocols to consider, the company decided to make the latest function applicable to online meetings.
“Now, Page owners can create an online event, set a price, promote the event, collect payment and host the event, all in one place,” Simo wrote in a blog post.
The goal of the company is to help businesses and sectors affected by the pandemic to let them connect with their “existing costumers and reach new ones” through “bringing their events and services online.”
Based on the testing of the feature, most of the events held are trivia events, podcast recordings, expert talks, boxing matches, fitness classes, cooking classes, and more.
Facebook has emphasized that in using the new feature, it will be free of charge until next year. Therefore, in countries where Facebook Pay is available, Page owners who will hold an online event will be able to keep 100% of their revenue.
However, it will not be the case for iOS users. Apple has its own regulations when it comes to in-app payments wherein a 30% App Store fee will be charged on every transaction made. The fee will apply to iOS users when they host an online event.
“We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19," the blog post stated.
"Unfortunately, they dismissed both our requests, and SMBs will only be paid 70% of their hard-earned revenue. While Facebook is waiving fees for paid online events we will make other fees clear in the product,” the post continues, along with a screenshot comparing what it looks like for Android and iOS.