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.