What Happened: Both companies will merge in a business combination to create a new entity whose Class A common stock will list on the New York Stock Exchange under the symbol “FSR.” Through the reverse merger, Fisker has gained access to $1 billion in cash inflows.
Spartan is funded by an affiliate of private equity giant Apollo Global Management Inc. APO 2.77%.
With the funding and strategic tie-ups in place, CEO and Chairman Henrik Fisker remarked, “ We can now fully turn our attention to developing and launching the revolutionary, all-electric Fisker Ocean into the heart of the midsize SUV market.”
Why Does It Matter: Special Purpose Acquisition Companies or SPACs are gaining more traction in the EV segment.
Price Action: After a 2.61% fall during Thursday’s trading session, SPAQ gained 1.79% in the after-hours to close at $9.12.