Trystan Casey
The Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company (Lion) announced their merger on November 30, 2020, with a transaction value of $200 million. The merger was approved by NGA shareholders on April 23, 2021, and the new entity is expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol LEV. The merger between NGA and Lion Electric is significant as it combines Northern Genesis' focus on sustainability and commitment to environmental, social, and governance principles with Lion Electric's position as a leading designer, manufacturer, and distributor of all-electric medium and heavy-duty urban vehicles.
| Characteristics | Values |
|---|---|
| Date of merger announcement | November 30, 2020 |
| Expected date of merger | First quarter of 2021 |
| Companies involved | Northern Genesis Acquisition Corp. (NGA), The Lion Electric Company |
| Type of merger | SPAC merger |
| Stock exchange | New York Stock Exchange (NYSE) |
| Ticker symbol | LEV |
| Market capitalization | $1.9 billion |
| Transaction details | $200 million private placement in common shares at $10 per share; $500 million net cash proceeds |
| Proceeds usage | Fund Lion's growth strategy, including expansion of advanced battery systems and U.S. manufacturing capacity |
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What You'll Learn
- The merger was approved by shareholders of both companies
- The new entity will be listed on the NYSE under the ticker symbol LEV
- The merger will help Lion Electric expand its manufacturing capacity
- The deal includes a $200 million private placement in common shares
- The merger is expected to be completed in the first quarter of 2021
The merger was approved by shareholders of both companies
The merger between Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company was approved by shareholders of both companies in April 2021. The merger was first announced in November 2020, with a proposed business combination expected to close in the first quarter of 2021.
The Lion Electric Company is a leading manufacturer of all-electric, zero-emission, medium and heavy-duty urban vehicles, including trucks and buses. The company creates, designs, and manufactures all of its vehicle components in-house, including chassis, battery packs, truck cabins, and bus bodies.
Northern Genesis Acquisition Corp., on the other hand, is a special purpose acquisition company (SPAC) or blank-check company, formed specifically for mergers and acquisitions. Northern Genesis is focused on sustainability and environmental, social, and governance (ESG) principles.
The merger between the two companies was a significant development in the electric vehicle (EV) industry. The combined entity, with a pro forma market capitalization of $1.9 billion, is expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol "LEV". The merger is also expected to provide Lion Electric with the capital required to expand its manufacturing capacity and further develop its advanced battery systems.
The approval of the merger by shareholders of both companies was a critical step in formalizing the business combination. With the merger now approved, Lion Electric is set to debut as a public company, benefiting from increased access to capital and a stronger market presence.
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The new entity will be listed on the NYSE under the ticker symbol LEV
The Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company (Lion) announced their merger on November 30, 2020. The merger involves a $200 million private placement in common shares, with a subscription price of $10 per share. The combined company is expected to receive net cash proceeds of around $500 million from the transaction.
The merger was approved by the shareholders of NGA, a publicly traded special purpose acquisition company, on April 23, 2021. The new entity, Lion Electric, will be listed on the New York Stock Exchange (NYSE) under the ticker symbol "LEV".
Lion Electric is a leading designer, manufacturer, and distributor of all-electric medium and heavy-duty urban vehicles. The company creates, designs, and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit, and mass transit segments. They are committed to transitioning to all-electric vehicles, believing it will bring significant improvements to society, the environment, and quality of life.
Northern Genesis Acquisition Corp., on the other hand, is a special purpose acquisition company formed to facilitate mergers, stock exchanges, acquisitions, reorganizations, or similar business combinations. The Northern Genesis management team is known for its entrepreneurial mindset and a proven track record of creating shareholder value in the sustainable power and energy sectors.
The merger between Lion Electric and Northern Genesis is expected to provide Lion with the necessary capital to expand its manufacturing capabilities and solidify its leadership in the all-electric medium and heavy-duty urban vehicle market.
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The merger will help Lion Electric expand its manufacturing capacity
The Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company (Lion) announced their merger on November 30, 2020, with the deal expected to close in the first quarter of 2021. The merger will see a wholly-owned subsidiary of Lion Electric merge with Northern Genesis, with the new entity listed on the New York Stock Exchange (NYSE) under the ticker symbol "LEV".
Lion Electric's current facility near Montreal, Quebec, has a production capacity of 2,500 vehicles per year. By expanding its US manufacturing capacity, Lion Electric aims to significantly increase its output. The company has also received financial support from the Canadian federal and provincial governments, who have invested a total of $100 million CAD in a battery manufacturing plant and innovation center in Quebec. This new facility will have a capacity of 5 GWh of battery storage production and is expected to begin operations in early 2023.
In addition to increasing its manufacturing capacity, Lion Electric has also secured deals with several prominent companies. For example, the company has received purchase orders from Second Closet and Pride Group Enterprises for its Lion6 heavy-duty zero-emission trucks. Lion Electric has also agreed to a deal with Amazon to reserve enough manufacturing capacity to deliver 500 of its electric trucks per year from 2021 to 2025, with the option to increase this to 500 trucks a year or 10% of its manufacturing capacity per year from 2026 to 2030.
By leveraging the resources and connections of Northern Genesis, Lion Electric will be able to expand its manufacturing capacity and meet the increasing demand for its electric vehicles.
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The deal includes a $200 million private placement in common shares
The merger between Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company (Lion) was announced on November 30, 2020, with a target closing date in the first quarter of 2021. The deal includes a $200 million private placement in common shares, also known as a private investment in public equity (PIPE).
The PIPE involves a $10 per share private investment in Lion, with proceeds going towards funding Lion's growth strategy. Specifically, the funds will be used to expand Lion's US manufacturing capacity, develop advanced battery systems, and construct a highly automated battery system assembly factory.
The combined company, with a pro forma implied market capitalization of $1.9 billion, is expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol "LEV". This listing will mark Lion's transition to a public company.
The merger between NGA and Lion is a significant development, as Lion is a leading manufacturer of zero-emission, all-electric medium and heavy-duty urban vehicles. The company creates, designs, and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit, and mass transit segments. With this merger, Lion gains access to capital and resources to further its growth and solidify its leadership in the electric vehicle market.
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The merger is expected to be completed in the first quarter of 2021
The merger between Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company was expected to be completed in the first quarter of 2021. NGA is a special purpose acquisition company, or SPAC, formed for the purpose of merging with another company. Lion Electric is a leading designer, manufacturer, and distributor of all-electric, zero-emission, medium and heavy-duty urban vehicles, including trucks and buses.
The merger was approved by shareholders of NGA, the SPAC, in April 2021. The combined entity was expected to be listed on the New York Stock Exchange (NYSE) under the ticker symbol "LEV". The merger was structured as a business combination, with a wholly-owned subsidiary of Lion Electric merging with and into Northern Genesis. The deal included a $200 million private placement of common shares in Lion (PIPE) and was expected to result in Lion receiving approximately $500 million in net cash proceeds.
The merger was expected to provide Lion Electric with the capital required to fund its growth strategy, including expanding its manufacturing capacity and developing advanced battery systems. In particular, Lion planned to use the proceeds to build a new, larger factory in the United States, which would increase its production capacity from 2,500 vehicles per year to 20,000 units per year. Additionally, Lion Electric had received financial support from the Canadian federal and provincial governments to establish a battery manufacturing plant and innovation center in Quebec.
The merger was also expected to benefit Lion Electric by providing access to the public markets and increasing its visibility and credibility. As a public company, Lion Electric would have greater access to capital and could use its stock as currency for acquisitions and other strategic initiatives. Furthermore, the merger with NGA would provide Lion Electric with additional legitimacy and credibility in the eyes of potential customers, partners, and investors.
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Frequently asked questions
The merger between Northern Genesis Acquisition Corp. (NGA) and The Lion Electric Company was announced on November 30, 2020.
The merger was approved by NGA shareholders on April 23, 2021, and was expected to be completed in the first quarter of 2021.
The merger allows Lion Electric to go public and gives the company access to capital to expand its manufacturing capacity and develop advanced battery systems.
The pro forma implied market capitalization of the combined company is expected to be $1.9 billion.
