EV Startup Canoo IPO Due This Year
$2.4 billion deal is the latest in reverse merger deals
California-based Canoo is joining the parade of electric vehicle startups planning to go public by quickly merging with a so-called “blank-check” investor.
The Canoo EV (Image: Canoo)
The Los Angeles-based EV company says it will merge with Hennessy Capital Acquisition, which will take the company public before year-end. The plan values the 3-year-old startup at $2.4 billion and will give it $600 million in development funds.
Shares will trade on the NASDAQ under the ticker symbol CNOO.
The companies are pursuing the same reverse merger strategy. The approach enables them to go public in weeks at a cost far lower than conventional IPOs. All are chasing investor mania—triggered by Tesla’s soaring share price—over the potential of EV companies.
Canoo, which was founded by two former BMW executives, plans to debut its vanlike Canoo EV next year in California. Sales will be on a subscription-only basis. Featuring party bus-style seating, the seven-passenger van features a glass roof and a range of 250 miles per charge.
Although the term “continuous improvement” is generally associated with another company, Honda is certainly pursuing that approach, as is evidenced by the Accord, which is now in its ninth generation.
Making improvements to existing engines, as well as working toward something entirely different.
The engineers at Munro & Associates have taken a perfectly sound BMW i3 and taken it apart. Completely apart. And they are impressed with what they’ve discovered about how the EV is engineered.