So far this year, there have only been 11 SPAC listings valued at $25 million or more. Since the Swedish electric vehicle (EV) manufacturer announced its merger with the special purpose acquisition company (SPAC) on Sept. 27, GGPI stock has gained about 14% or so. Gores Guggenheim went public with its initial public offering (IPO) in March. The deal announcement stated it would close before June 30, 2022. The CEO came out and said Polestar wasnt going to be Volvo (OTCMKTS:VLVLY) or some other brand looking for mass appeal. Presumably, the deal, which will result in the company taking on the Polestar name, and GGPI stock becoming PSNY stock, will close not too long after that. He lives in Halifax, Nova Scotia. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. On the date of publication, Will Ashworth. Sept 27 (Reuters) - Swedish electric-car maker Polestar said on Monday it will go public by merging with a U.S.-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of $20 billion. Polestar / Gores Guggenheim Inc.(GGPI) made a splash this morning, announcing a partnership with Hertz (HTZ) that includes purchasing up to 65,000 electric vehicles (EVs) over five years. News, Media, rumors,and general discussion topics are welcome! For aggressive, long-term investors who seek exposure to electric vehicles and dont already own GGPI stock, it is an excellent name to buy. Ingenlaths comments in Automotive News laid out Polestars three-pronged production plan for China, South Carolina and Europe. About the Car Design Award. Subscriber Agreement & Terms of Use | EV maker Polestar going public via a SPAC with Gores Guggenheim. All quotes are in local exchange time. This announcement comes alongside ongoing Over-The-Air (OTA) updates that are delivering new features to Polestar 2 owners and pre-empts a future option to purchase a performance software upgrade that adds an extra 67-hp for the dual-motor variant. Anywhere in between makes it harder to gain customer loyalty. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. Prior to merger deal announcements, SPAC stocks tend to stay close to $10 a share. Therefore, it might make sense to buy now before the merger, rather than afterwards. Initial orders are for the Polestar 2 sedan. It was established to help Volvo win the Swedish Touring Car Championship. The enterprise hardware company saw surprising strength in the January quarter in computing and networking hardware. The transaction is expected to close in the first half of the year. Ventoux CCM Acquisition Corp. . Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. It is free and there is no cost or obligation to you. Excluding employee stock compensation from one measure of earnings make them look more favorable. The Company completed the Public Offering on March 25, 2021 (the "IPO Closing Date"). Under the terms of the agreement, GGPI . Sam Zaid, CEO of Getaround, joins David Drapkin on the podcast to discus what makes carsharing company Getaround so special and their journey to go public. Decembers SPAC market review takes a look by the numbers of the months SPAC activity and how the market currently stands going into 2023. The post GGPI Stock Heats Up as Polestar SPAC Merger Closes appeared first on InvestorPlace. Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, founded by Alec Gores, and by an affiliate of Guggenheim Capital, LLC. Twitter Reports 40% Drop in Revenue and Adjusted Earnings to Investors: WSJ. On 11/4/2021 the company announced a proposed merger with TradeStation Group, Inc, who provides award-winning trading and . From the day the Polestar 1 was launched, I have been a fan of the brands designs. Now, with volatility likely to continue into 2022, some possible alternatives exist as a short-term solution for risk-averse EV investors. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. As you might be aware, post-merger, Polestars existing shareholders will own 94% of the company. On the date of publication, neither LouisNavellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. Shares of Gores Guggenheim pared some earlier gains and were up over 4% in morning trading. See here for a complete list of exchanges and delays. Nosotros, Yahoo, somos parte de la familia de marcas de Yahoo. Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Polestar CEO Thomas Ingenlath recently discussed the companys plans with Automotive News. However, it was what he said Polestar is and isnt that caught my attention. Consumers looking for more ways to save money helped Kroger beat profit expectations and provide an upbeat outlook. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. However, over a longer timeframe, it could zoom to price levels well above $20 per share. Do this now. Objective, data-driven assessments for every public company director and officer. I share my. Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Today's announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. This report contains opinions and is provided for informationalpurposes only it does not constitute investment, legal or tax advice. Anticipation on GGPI/Polestar merger. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). Press question mark to learn the rest of the keyboard shortcuts. Not bad, given that, if it grows as expected, itll generate $17.6 billion in annual sales by 2025. "We will build in America for Americans," says Thomas Ingenlath, Polestar CEO. All quotes delayed a minimum of 15 minutes. Joel Baglole for Cision Distribution 888-776-0942 The funding will be used to. So naturally, theCEO had a lot to say on the subject. Intraday data delayed at least 15 minutes or per exchange requirements. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. GGPI / Polestar trades higher on HTZ deal . Privacy Notice | . The Company has selected December 31 st as its fiscal year-end. Its safe to say this isnt the best market for an EV company to debut. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. At least two hedge funds sold their stakes in Digital World Acquisition Corp. after that SPAC firm announced plans to merge with former President Donald Trump 's planned social media platform.. A buy under $10 would be an excellent entry point, in my opinion. Gores Guggenheim believes the deal will raise about $850 million in gross proceeds. The post Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term appeared first on InvestorPlace. Contact:Juan E. Monteverde, Esq.MONTEVERDE & ASSOCIATES PCThe Empire State Building350 Fifth Ave. Suite 4405New York, NY 10118United States of America[emailprotected]Tel: (212) 971-1341. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. The technical storage or access that is used exclusively for statistical purposes. Currently, this stock earns a B rating in my Portfolio Grader. This relationship gives Polestar access to manufacturing in Chinas as well as facilities in Europe and the U.S. Geely has a 2022 target of 1.65 million vehicles. Around the same time as my article, fellow InvestorPlace contributor Chris Tyler argued that technical analysis of the stock suggested the beginning of December wasnt the time to buy either. In 2014, it mass-produced both the S60 and V60 for sale in eight markets. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. He lives in Halifax, Nova Scotia. However, I also said that investors need not rush to buy the SPAC before the merger happens. Copyright 2023 InvestorPlace Media, LLC. The investigation focuses on whether GGPI and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by 1) failing to conduct a fair process, and 2) whether the transaction is properly valued. The industry leader for online information for tax, accounting and finance professionals. Polestar is a Swedish electric vehicle manufacturer backed by Volvo and Volvo's de facto . It previously said it has another model in development called the Precept, which is a larger sedan. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. New pill cuts cholesterol, heart attacks, Seniors:Heres an easy wayto cut your risk of a heart attack or stroke by nearly 80%. AONs Aria Glasgow on Managing ESG and Human Capital Risk, Korn Ferrys Anthony Goodman on the Importance of Board Evaluations, Podcast: Getaround CEO Sam Zaid on Carsharing and Going Public, What to Know about Universal Proxy with Bruce Goldfarb of Okapi Partners, Podcast: Li-Cycles (LICY) Ajay Kochhar on Lithium Ion Battery Recycling and EVs, SPAC Podcast: Alliance Entertainment & Adara Acquisition. GGPI Stock News. The Gores Group led by chairman Alec Gores and CEO Mark Stone announced the deal between Gores Guggenheim Inc (NASDAQ: GGPI) and electric vehicle company Polestar. However, if you own Gores Guggenheim (NASDAQ:GGPI) stock, one sentence by Ingenlath stands out in a good way. February 28, 2023. InvestorPlace is one of Americas largest, longest-standing independent financial research firms. At the time of this writing, the stock is down 2.83% on the day, closing in on $11. The opinions expressed in this article are those of the writer, subject to the, Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term, Biden Hears Oval Office Plea for Alaska Oil Project in Lobbying Frenzy, Apple tops ranking of global companies with the most 'green' revenue, UPDATE 2-North Korea says UN should demand end to S.Korea-US military drills, US Treasury puts cost of outbound investment risk program at $10 million, US Jobs Report and Powell Testimony Take Center Stage: Eco Week. Nevertheless, even as EV stock mania has waned, the EV trend isnt going away. Insurance Doesnt Have to Be Boring. We use cookies to optimize our website and our service. A recovery may not happen until the market has absorbed the changes in economic and market conditions. A Polestar will be more progressive and avant-garde; therefore, it will not be loved by everybody, but it will address its fans, Ingenlath stated. Inc. ("GGPI" or the "Company") (GGPI)a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. Whats our next move? The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina from next year. However, thats an entirely different subject than whether you should buy GGPI at todays prices. GGPI shares starting to regain momentum ahead of merger vote. Additionally, a possible third alternative here is to buy the First Trust Nasdaq Global Auto Index Fund (NASDAQ:CARZ). The deal relates primarily to the EV makers Model 3. Its beginning dates back to. Amidst production hiccups at rivals, Polestar is delivering. Li-Cycle (LICY) CEO Ajay Kochhar joins Know Who Drives Return to discuss lithium ion battery recycle in the latest podcast episode. Higher interest rates aren't deterring companies with high credit ratings from borrowing in the U.S. corporate bond market at a record clip in 2023. . However, at one point in mid-November, GGPI stock was trading as high as $16.41. Broadcom continued to produce better results and forecast better near-term sales than Wall Street expects Thursday, and shares rose in extended trading. The decision is yours to make. All Rights Reserved. Market is a lot different now versus CCIV/LCID times. Sign up below to get this incredible offer! The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. We were listed in theTop 50in the 2018-2020 ISS Securities Class Action Services Report. Si quieres personalizar tus opciones, haz clic en Gestionar configuracin de privacidad. Create an account to follow your favorite communities and start taking part in conversations. As we move into the merger vote, we think GGPI should be trading closer to $20. The focus was entirely on internal combustion-powered vehicles. Polestar itself is a joint venture between Volvo (OTCMKTS:VLVLY) and Geely (OTCMKTS:GELYY). The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. Post-merger, itll have a market capitalization of $21.8 billion. When typing in this field, a list of search results will appear and be automatically updated as you type. Moreover, Polestar put together a very good slide deck presentation . Intraday Data provided by FACTSET and subject to terms of use. Assuming a post-merger tally of approximately 2.15 billion shares, a stock price of $20 on GGPI equates to a $43 billion market cap. GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. Critics of the practice include Warren Buffett. However, of the two, GELYY stock volumes are a little higher. Anticipation on GGPI/Polestar merger. This deal received tremendous fanfare as the single-largest ever purchase for electric cars for 100,000 vehicles as well as a partnership with Uber (UBER) to provide 50,000 of those vehicles to its delivery drivers. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Polestar, founded in 2017 by Volvo Car Group (VOLVb.ST) and China's Zhejiang Geely Holding (GEELY.UL), also counts Hollywood actor Leonardo DiCaprio among its investors. Visit a quote page and your recently viewed tickers will be displayed here. quotes delayed at least 15 minutes, all others at least 20 minutes. Sign up for free newsletters and get more CNBC delivered to your inbox. As you might be aware, post-merger, Polestars existing shareholders will own, . PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. As reference, LCID, which is still in early production, trades at ~10x 2023E sales. Because if it runs as Polestar it will do so premarket. At least 73 SPACs that had planned to go public this year have since been canceled due to deteriorating market conditions. Create your Watchlist to save your favorite quotes on Nasdaq.com. 1125 N. Charles St, Baltimore, MD 21201. Assuming it hits its growth targets, delivering a six-figure amount of vehicles annually, and generating tens of billions in annual sales, within three years. Based on a $49K starting price, the deal is valued at ~$3.2B. The critical distinction about Polestar is that its not a startup. He particularly enjoys creating model portfolios that stand the test of time. 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The combination of Gores Guggenheim and Polestar is one of the biggest SPAC deals of the year. Joanna has been analyzing and investing in emerging technologies for over two decades, having led the Technology, Media, and Telecom research at several global investment banks, including Mizuho Securities and Canaccord Genuity. GGPI Stock Heats Up as Polestar SPAC Merger Closes, Do Not Sell My Personal Information (CA Residents Only). "We don't need the capital to build the factory. After a bustling 2021, the entire SPAC market has slowed markedly amid the global market. However, what he said next did. Ends. Join the Conversation! That company provides digital twins of properties. I also said that, at these prices, GGPI stock would seem like a steal in a few years. But there is reason to believe that quality, well-run EV companies like PSNY will survive and thrive in the years ahead. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. Valuation remains discounted, in our view, at an implied market cap of $26.1 billion ($12.40 and 2.125B shares outstanding), which implies 3.9x 2023E sales. What happens to my Social Security benefit if my husband dies? The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. While the vast majority of these vehicles will be sold in China, the company is also making a push into other Asian markets. , including Geely at a 3.22% weighting. Inc. ("GGPI" or the "Company") (GGPI) a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. Polestar touts an asset-light business model as a key differentiator by having existing productions lines provided by backers Volvo and Geely, so it can focus on investing in research. The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina beginning next year. Is GGPI a buy now in 2021? Ive learned in recent years that businesses operating in the middle have less chance of success. In what stands to be a pivotal year for the future of the market, we recap January. I recommend taking an in-depth look at this company, its lineup of mass affluent and luxury EVs, and its game plan to take on Tesla (NASDAQ:TSLA), Lucid (NASDAQ:LCID), and the incumbent automakers looking to grab a piece of the electric vehicle market. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Enthusiasm about the. Copyright We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. You might even get a better price in the process., Around the same time as my article, fellow, Chris Tyler argued that technical analysis of the stock suggested the beginning of December. Polestar intends to list on the Nasdaq in a proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in June 2022. American Airlines (AAL) announces its new chairman of the board as Gregory D. Smith, the former CEO of Boeing (BA). Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. Featured. Bruce Ogilvie and Jeff Walker discuss Alliance Entertainment going public via Adara Acquisition Corp. (ADRA). Despite being outside the top 10, its a reasonable amount of exposure. Why Chubb Stock Is a Buy. Strong underwriting, an Asia expansion, and a history of consistent dividend raises make the shares attractive. company, and Gores Guggenheim, Inc. ("Gores Guggenheim") (Nasdaq: GGPI, GGPIW and GGPIU), a special purpose acquisition company ("SPAC") formed by affiliates of The Gores Group and Guggenheim Capital, LLC, announced today that they have entered into a definitive business combination agreement (the "Business Combination Agreement"). Deal Announcement for ISAA /HYPEBEAST . Historical and current end-of-day data provided by FACTSET. He has also been selected by Martindale-Hubbell as a 2017-2021 Top Rated Lawyer. Nordstrom says it will end its business in Canada to help shore up profit after reporting weaker-than-expected sales results and forecasts. This news follows the September announcement of Polestar's intention to list on Nasdaq in connection with its proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in the first half of 2022. The vehicles will be produced at its new factory in Casa Grande, Arizona. Aug. 17 2021, Published 3:11 p.m. On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Salesforce Inc. (CRM) surges after hours following earnings amidst potential activist activity and todays SPAC, IPO, and Exec News. However, according to Volvo, only 100 were made in the initial year. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, butBoardroom Alphacannot guarantee its accuracy and completeness, and thatofthe opinions based thereon.
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