Romeo Power Now Cleared To Go Public as the Shareholders of the SPAC RMG Acquisition Have Approved the Merger Agreement
Romeo Power, a company that designs and manufactures lithium-ion battery modules and packs for commercial electric vehicles, is now all set to merge with the Special Purpose Acquisition Company (SPAC), RMG Acquisition (NYSE:RMG), becoming a public entity in the process.
Romeo Power and RMG Acquisition (NYSE: RMG) Are Now All Set to Close Their Merger Agreement
We reported a few days back that RMG Acquisition shareholders would vote on the proposed merger agreement with Romeo Power during a special meeting on the 28th of December. Well, the virtual meeting was convened as per the schedule, with the following proposals placed on the docket for deliberation:
- Business Combination Proposal: To approve and adopt the merger agreement, dated the 05th of October 2020.
- RMG Charter Proposals: To change the name of the combined company to Romeo Power, Inc; to modify the capital structure by allowing 250 million authorized common shares as well as 10 million authorized preferred shares; to approve various necessary changes to the amended and reinstated certificate of incorporation.
- NYSE Proposal: To approve the issuance of 95,916,029 RMG Class A common shares with respect to the business combination; to approve the issuance of 16 million RMG Class A common shares to subscription investors.
- Director Election Proposal: To elect nine directors to serve on the board.
- Incentive Plan Proposal: To approve the 2020 Long-Term Incentive Plan.
- The Adjournment Proposal: To adjourn the special meeting to a later date.
RMG Acquisition shareholders have now approved all tabled proposals, paving the way for the closure of the merger agreement with Romeo Power.
“We are scheduled to close on the 29th and the new ticker – RMO – will start trading on the 30th.
President and COO
RMG Acquisition Corp. II. $RMG
— Sports Guy (@Jimbeamclassic) December 28, 2020
Upon this closure, the shares of the combined company will start to trade on the NYSE under the ticker symbol RMO – (NYSE: RMO). Moreover, the combined company will adopt the name Romeo Power Inc. RMG Acquisition shares are up over 3 percent today after the meeting.
As a refresher, Romeo Power currently offers battery packs to three categories of commercial vehicles – medium-duty short-haul trucks, heavy-duty long-haul trucks, and specialty trucks and buses. The company is an attractive bet for electric vehicle OEMs as its battery packs have a highly flexible architecture, allowing for rapid adaptability and scalability. Moreover, these battery packs are not bound to one cell supplier, eliminating the supplier risk as well as the risk of technological obsolescence. Finally, these battery packs form a part of an established recycling program that is intended to reduce the carbon footprint of depleted batteries.
As far as the company’s finances are concerned, Romeo Power presently has contracted revenue of around $310 million, with a further $2.4 billion in revenue currently under negotiation. The company expects to earn annual revenue of $412 million in 2022. However, by 2025, its top-line metric is expected to swell to $1.65 billion, constituting growth of around 300 percent.
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