In a statement, Lion Electric Co stated it plans on going public through a merger with blank-check company Northern Genesis Acquisition Corp. The startup aims to ramp up production capacity to tap growing demands for electric vehicles.
Known for its yellow electric school buses, Quebec-based Lion Electric expects to receive around $500 million of net cash proceeds from the deal.
Founded in 2008, Lion Electric said the deal will help it expand its U.S. manufacturing capacity, construct a battery-system assembly factory and develop advanced battery systems.
It expects the deal, which will create a company which will have a market value of around $1.9 billion, to close during the first quarter of 2021.
The company will be listed on the the New York Stock Exchange under the symbol “LEV”. Lion Electric’s shareholders are expected to hold about 70% of the combined company’s common equity after the deal is closed, assuming no redemptions from Northern Genesis’ shareholders.