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Canoo, a company that is developing passenger and commercial electric vehicles (EVs) based on a highly versatile skateboard platform, is now all set to go public by merging with the Special Purpose Acquisition Company (SPAC), Hennessy Capital Acquisition Corp IV (NASDAQ:HCAC).
Canoo and Hennessy Capital Acquisition Corp IV (NASDAQ: HCAC) Are Now All Set to Close Their Merger Agreement
We reported a few days back that Hennessy Capital shareholders would vote on the proposed merger agreement with Canoo during a special meeting on the 21st of December. Well, the virtual meeting was convened as per the schedule, with the following proposals placed on the docket for deliberation:
- The Business Combination Proposal: To approve and adopt the merger agreement, dated the 17th of August 2020.
- The Charter Proposals: To increase the number of authorized common shares to 500 million and the number of authorized preferred shares to 10 million; to establish the 2/3rd majority as the threshold for altering, amending, or repealing the bylaws of Hennessy Capital as well as the articles V, VI, VII, and VIII of the charter; to approve and adopt the proposed charter.
- The Election of Directors Proposal: To elect nine directors to serve on the board.
- The Stock Incentive Plan Proposal: To approve and adopt the equity incentive award plan.
- The Employee Stock Purchase Plan Proposal: To approve and adopt the employee stock purchase plan.
- The Nasdaq Proposal: To approve the issuance of 175 million Class A common shares, including a provision of an additional 15 million shares, to Canoo equity holders; to approve the issuance of 32.325 million Class A common shares to PIPE investors.
- The Adjournment Proposal: To adjourn the special meeting to a later date.
Hennessy Capital shareholders have now approved all tabled proposals, paving the way for the closure of the merger agreement with Canoo.
— Kjetill Stjerne 🌿 (@KjetillStjerne) December 21, 2020
Once that occurs, the shares of the combined company will start to trade on the NASDAQ under the ticker symbol GOEV (NASDAQ: GOEV). Moreover, the combined company will adopt the name Canoo Inc. Hennessy Capital shares are up over 1 percent today after the meeting.
In the run-up to today’s vote, Hennessy Capital announced on the 18th of December that the combined company would have access to over $625 million in proceeds after the lapse of the pre-merger share redemption window.
Of course, today’s development follows another milestone last week, when Canoo unveiled a new multipurpose electric vehicle aimed at last-mile deliveries and other small businesses. Expected to start retailing in 2022 from $33,000 onward, this van is the second addition to the company’s product portfolio, following the announcement of a subscription-only van last year. The smaller variant of the new van will offer a cargo space of 230 cubic feet and a maximum range of 230 miles, based on an 80-kWh battery pack. On the other hand, the larger variant will offer 500 cubic feet of cargo space and a maximum range of 190 miles, again based on an 80-kWh battery pack.
As a refresher, Canoo’s star attraction is its highly flexible and modular skateboard platform that enables rapid development of electric vehicles – the entire process concludes in 18 to 24 months – at a substantially reduced cost. Crucially, the company’s skateboard platform offers direct integration of battery modules and features the flattest and lowest profile in the industry, thereby maximizing interior space and lowering costs.
Moreover, in a departure from the industry norms, Canoo’s Lifestyle and Sport models will be available to the consumers via an innovative subscription business model. With a single monthly payment, consumers will be able to avail of a comprehensive list of perks, including standard maintenance, warranty, insurance, and vehicle charging.
Canoo plans to engage an OEM to produce its vehicles, thereby reducing its CAPEX requirements substantially. As far as financial projections are concerned, the company expects to earn a revenue of $120 million in 2021. This top-line metric, however, is expected to swell to $1.43 billion by 2024 and to a whopping $4.12 billion by 2026.