Fisker Announces Reservations For Ocean’s SUV During Continuing Merger Talks With Spartan Energy (SPAQ)
Fisker Inc. has been on investors’ radar lately when it negotiated a merger agreement with Spartan Energy (NYSE: SPAQ). Upon completion of the merger, the company will benefit from a $ 1 billion cash infusion sufficient to bring the all-electric Fisker Ocean to market by 2022.
According to the company, the Fisker Ocean will be the world’s most sustainable car, with a full electric range of 250-300 miles and a vegan interior made from recycled materials. Fisker claims on its website that the Ocean SUV will offer the following features:
“The Fisker Ocean will be offered in a four-wheel drive configuration on all coverings except the base model (rear-wheel drive), which reflects the vehicle’s off-road capabilities. The standard four-wheel drive configuration delivers over 225 kilowatts (over 300 hp), with an ultra-high-performance version aiming at zero to 60 mph in under three seconds (total power to be announced in 2021). “
In a smart move designed to cut costs and maximize efficiency, Fisker has announced that it will partner with other automakers to manufacture and assemble key Ocean EV components. However, these production partners have not yet been finalized.
This brings us to the heart of the matter. Henrik Fisker, the chairman and CEO of Fisker Inc., announced via a tweet on July 22 that the company would reveal the amount of reservations the Ocean SUV has collected so far on July 30:
We will release our reservations and customer interest on July 30 for our 2022 Fisker Ocean EV. We take deposits of $ 250. See👉🏽 https://t.co/ywdczefXB1 —-#fisker #love # EVs #art #design $ SPAQ #architecture #emobility #solar #supercar #car pic.twitter.com/PnpTEsNHpk
– Henrik Fisker (@henrikfisker) July 21, 2020
Well, the numbers have just been released and they are encouraging. According to Fisker, the company has gathered over 30,000 registered users to date. However, it should be noted that the company had registered 22,000 expressions of interest for the Ocean EV in April.
The Fisker Fam is now a community of 30,000+ registered users in 30 countries, with over 7,000 advanced reservations for the Fisker Ocean. Thank you for participating in this trip and here is a bright future for everyone.#fisker #electric vehicles #spaq pic.twitter.com/fdkzorVVKK
– Fisker Inc. (@FiskerInc) July 31, 2020
For comparison: Nikola’s (NASDAQ: NKLA) The Badger electric pick-up managed to retrieve less than 5,000 reservations within 4 days of the opening of the booking process. On the other hand, the Tesla (NASDAQ: TSLA) Cybertruck registered 146,000 reservations within 2 days of the facility opening.
In addition to the reservation numbers for the Ocean EV, Fisker also has that announced that from 2023, 3 additional electric vehicles will come on the market.
While the Fisker Ocean reservation numbers represent a healthy amount of interest, investors are now likely to turn their attention to the ongoing merger process between Fisker and Spartan Energy – a Special Purpose Acquisition Company (SPAC). As we explained earlier, an SPAC is formed with the sole purpose of raising capital through an IPO and then to channel these IPO proceeds into the acquisition of an existing company. The deal is expected to close in the fourth quarter of 2020 and is likely to be worth $ 2.9 billion, including $ 500 million in PIPE investments. To refresh, a Private Investment in Public Equity (PIPE) is the purchase of shares of publicly traded shares at a discount to the current market price by institutional investors. The mechanism is designed to reward these investors for providing an infusion of liquidity.
To this end, Spartan Energy has submitted a final proxy statement (DEF 14A) on July 23 with the US SEC followed by an amended proxy statement (DEFA 14A) on July 28. According to the filing on July 28, existing Spartan Energy shareholders were invited to a special meeting on August 3 to vote on the amendment to the SPAC charter. This change is extended “The date that the company must complete a business combination for another six months, from August 14, 2020 to February 14, 2021.”.
The move makes sense, as Fisker’s merger with Spartan Energy is unlikely to close by the existing August 14 deadline. If the proposal is not approved, the application states that the following procedure is followed:
“If the proposal to amend the charter is not approved at the special meeting or any postponement or postponement thereof and we fail to complete a business combination on August 14, 2020, as intended by our first public offering prospectus and in accordance with our charter, we (i) cease all operations, except for settlement, (ii) as soon as reasonably possible but no more than ten business days thereafter, the shares of our Class A ordinary shares that are sold as part of the units in our IPO, redemptions at a price per share, payable in cash, equal to the total amount subsequently deposited into the bank account for the holders of our public shares … “
In a critical reservation, the submission notes:
“The holders of the public shares may elect to repurchase their shares for their pro rata share of the funds available on the trust account in connection with the Charter Change, regardless of whether and how such public shareholders vote in respect of the Charter Change. “
This means that Spartan Energy shareholders can redeem their shares without any consideration of the approval or rejection of the charter change and receive approximately $ 10.31 per share redeemed. Given the broad implications of the vote, analysts and Fisker enthusiasts will continue to monitor developments in this area very closely.