The deal with Gores Guggenheim (GGPI.O) will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private. The fact that the company is moving close to 30,000 units this. Many EV enthusiasts see its focus on performance vehicles as a differentiator. . Electric-car maker Polestar strikes $20-billion deal with Gores - CNBC At least, based on its success so far, and on future projections. The volatility amongst EV manufacturers has been significant in the second half of 2021. ET It has been over a month since the rumor started floating that the SPAC Gores Guggenheim (GGPI) could merge with premium EV manufacturer Polestar. Don't take it as financial . The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). The funding will be used to. He was right. The deal with Gores Guggenheim (GGPI.O) will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private investment in public equity, of $250 million from institutional investors. He particularly enjoys creating model portfolios that stand the test of time. The Car Design Award was established in 1984 by Fulvio Cinti, founder and editor-in-chief of Auto&Design for more than thirty years. Historical and current end-of-day data provided by FACTSET. Check out our February podcast with CEO Thomas Ingenlath, and detailed analysis of GGPI here. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Both stocks are thinly traded over the counter. Para obtener ms informacin sobre cmo utilizamos tus datos personales, consulta nuestra Poltica de privacidad y Poltica de cookies. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. Once the reverse merger is finalized, shares of Polestar will begin trading on the Nasdaq tomorrow under the PSNY ticker symbol. Will Ashworth has written about investments full-time since 2008. Copyright 2023 InvestorPlace Media, LLC. The higher the price point, the easier it is to pull off. Plus500. files S-4 for merger with Blade Therapeutics (BBTX). Gores Guggenheim and Polestar Expected to Close Business - Yahoo! For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Anywhere in between makes it harder to gain customer loyalty. Place to discuss GGPI and Polestar. Not bad, given that, if it grows as expected, itll generate $17.6 billion in annual sales by 2025. We live in purgatory: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. Therefore, it might make sense to buy now before the merger, rather than afterwards. Merging with Colombier Acquisition in $200M Deal. Its a New Era for Tech Stocks. 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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. Salesforce Inc. (CRM) surges after hours following earnings amidst potential activist activity and todays SPAC, IPO, and Exec News. Heres why you should consider them. Then I realized it was just a survey. However, what he said next did. Investors also like the fact a global automotive giant backs Polestar. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. Get in Now on Tiny $3 Forever Battery Stock, Early Bitcoin Millionaire Reveals His Next Big Crypto Trade On Air. An analyst thinks theres a good chance that PayPal will make an acquisition in the next few months and runs through the most likely -- and least likely -- scenarios. Will GGPI Stock Spike After the Polestar Merger Announcement? Inc. ("GGPI" or the "Company") (GGPI)a special purpose acquisition company, relating to the proposed merger with Polestar Automotive Holding Limited. InvestorPlace is one of Americas largest, longest-standing independent financial research firms. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Visit a quote page and your recently viewed tickers will be displayed here. Polestar looks to be a nich brand, which makes GGPI stock attractive here. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Prior to merger deal announcements, SPAC stocks tend to stay close to $10 a share. It was a slower month to kick off the year for SPACs. The Polestar deal will be supported. 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. 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. Investors still bullish on EV stocks can purchase shares of Polestar once PSNY stock starts trading tomorrow morning. At least 73 SPACs that had planned to go public this year have since been canceled due to deteriorating market conditions. See here for a complete list of exchanges and delays. Its safe to say this isnt the best market for an EV company to debut. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Our 3 Top Picks. In what stands to be a pivotal year for the future of the market, we recap January. Polestar delivered about 10,000 vehicles globally last year and expects to sell about 290,000 vehicles per year by 2025. The focus was entirely on internal combustion-powered vehicles. 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. 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. Also, over the years the firm has recovered or secured over a dozen cash common funds for shareholders in mergers & acquisitions class action cases. We want to hear from you. Emulex Corp. v. Varjabedian, 139 S. Ct. 1407 (2019). Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. We were listed in theTop 50in the 2018-2020 ISS Securities Class Action Services Report. 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. Gores Guggenheim believes the deal will raise about $850 million in gross proceeds. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. It is the biggest blank-check merger in the EV sector since Lucid Motors struck a $24-billion deal with Michael Klein's Churchill Capital IV Corp. in February. , including Geely at a 3.22% weighting. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. BA sits down with Aria Glasgow, Head of ESG Advisory at Aon, to discuss the intersection ESG and Human Capital and the risk for corporates. If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. While the vast majority of these vehicles will be sold in China, the company is also making a push into other Asian markets. Gores Guggenheim Stock News and Forecast: GGPI stock sets - FXStreet As the deal approaches a close, GGPI shares have formed a solid base of support. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. [I]f a stock is destined to be a long-term winner (five to 10 years out), there is no rush to run out and buy it. Real-time alerts, yields, red flags, filings, investors, and much more. GGPI Stock Heats Up as Polestar SPAC Merger Closes, Do Not Sell My Personal Information (CA Residents Only). After the merger, the combined entity. So, this all gives you two alternatives to GGPI stock: either Volvo or Geely. 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. Build your trading network; Follow your favorite assets . Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Lastly, the fact that Ingenlath doesnt want to be something to everyone suggests that he fully understands Polestars target market. quotes delayed at least 15 minutes, all others at least 20 minutes. Owner Earnings per Share (TTM) explanation, calculation, his Yet while its made this major progress, its not resulting in a big move for shares. The deal announcement stated it would close before June 30, 2022. GGPI shares starting to regain momentum ahead of merger vote. On 11/4/2021 the company announced a proposed merger with TradeStation Group, Inc, who provides award-winning trading and . Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. 1125 N. Charles St, Baltimore, MD 21201. About the Car Design Award. Amidst production hiccups at rivals, Polestar is delivering. When typing in this field, a list of search results will appear and be automatically updated as you type. Yet if youve done your research, and are bullish on the future prospects of this promising EV play, consider GGPI stock a buy. Supply chain headwinds, which have resulted in EV makers walking back revenue and delivery targets, have played a role as well. Polestar said at the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan. The critical distinction about Polestar is that its not a startup. It will also have a more daring design, InsideEVs reported Ingenlaths comments. Silicon Valley Confronts the End of Growth. That said, I suppose you could also argue that GGPI will move significantly higher once its trading under its new symbol, PSNY. The technical storage or access that is used exclusively for anonymous statistical purposes. Thats well above where it currently trades under the $11.50 level. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). Type a symbol or company name. Because if it runs as Polestar it will do so premarket. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. February 28, 2023. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. Second, it currently trades at an attractive valuation relative to its prospects. Its beginning dates back to 1996. Volvo said on Monday it will make additional equity investments in Polestar of up to $600 million and is expected to hold about 50 percent of the combined company. The deal is expected to close later today. With that in mind, I continue to believe in Alec Gores real-world record of success with SPACs. DWACW (Digital World Acquisition) Owner Earnings per Share (TTM) as of today (March 02, 2023) is . With all that said, your question is between taking the risk of GGPI tanking after merger vs maybe missing out a huge chunk of gains. Post-merger, itll have a market capitalization of $21.8 billion. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. We use cookies to optimize our website and our service. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. A recovery may not happen until the market has absorbed the changes in economic and market conditions. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. And Im not even a total car geek. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. In addition to the Geely relationship, Polestar has access to Volvos manufacturing infrastructure. Polestar CEO Thomas Ingenlath recently discussed the companys plans with Automotive News. It is free and there is no cost or obligation to you. Source: Jeppe Gustafsson / Shutterstock.com. All rights reserved. Two years later, it made a move to electric-powered performance vehicles. GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). Intraday Data provided by FACTSET and subject to terms of use. did not have (either directly or indirectly) any positions in the securities mentioned in this article. Illusion versus reality. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. Pending SPAC Mergers - Stock Market MBA The transaction is expected to close in the first half of the year. A buy under $10 would be an excellent entry point, in my opinion. Enthusiasm about the deal, which was announced last fall, has seen a big drop in recent months. Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. This browser is no longer supported at MarketWatch. At the end of November, I argued that GGPI stock was a better buy for aggressive investors than, f a stock is destined to be a long-term winner (five to 10 years out), there is no rush to run out and buy it. Ingenlath wants customers that will be loyal to the Polestar brand. Share of GGPI closed up 12% today on news that the company has a deal . What Is the Best EV Stock to Buy Now? Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. All quotes delayed a minimum of 15 minutes. did not hold (either directly or indirectly) any positions in the securities mentioned in this article. LOS ANGELES & GOTHENBURG, Sweden, June 21, 2022 -- ( BUSINESS WIRE )--Gores Guggenheim, Inc. ("Gores Guggenheim" or the "Company") (NASDAQ: GGPI, GGPIU and GGPIW), a special purpose acquisition. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. DWAC (Digital World Acquisition) Accumulated other comprehensive income (loss) as of today (March 02, 2023) is $0.00 Mil. 5 Penny Cryptos With the Most Potential for Growth, 3 Cream-of-the-Crop Growth Stocks to Buy for 2023, Gores Guggenheim Stock Will Pop Post Merger, But Theres Still Time to Buy. Consumers looking for more ways to save money helped Kroger beat profit expectations and provide an upbeat outlook. Transaction is expected to be completed in the second quarter of 2022. Create an account to follow your favorite communities and start taking part in conversations. Decembers SPAC market review takes a look by the numbers of the months SPAC activity and how the market currently stands going into 2023. But no matter when exactly the recovery begins, it may be worthwhile to lock down positions before it happens rather than after it happens. . Targeted companies such as Disney and Salesforce are learning how to grab the momentum back from activists, and communicate more effectively. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. He lives in Halifax, Nova Scotia. The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. The enterprise hardware company saw surprising strength in the January quarter in computing and networking hardware. Create your Watchlist to save your favorite quotes on Nasdaq.com. Again, such middling performance could carry on, before and after the deal closing. Changing market conditions (namely, rising interest rates) have put pressure on their valuations. 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. Press J to jump to the feed. GGPI Gores Guggenheim Inc - Ordinary Shares - Class A either via e-mail at [emailprotected] or by telephone at (212) 971-1341. However, for now, it seems to have its feet on the ground, providing investors with very reasonable growth projections. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. 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"). Polestar Provides Next Glimpse of Polestar 3 and Reaffirms Growth Plans Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Even if its an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. Excluding employee stock compensation from one measure of earnings make them look more favorable. As background, Polestar is jointly owned by Volvo and its parent company Chinese OEM Geely (GELYY). Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. An alternative to Tesla. 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. The stock did rise the day after the shareholder vote announcement, but since then, its drifting lower. The Company completed the Public Offering on March 25, 2021 (the "IPO Closing Date"). As I stated in January, I think GGPI stock soon to be PSNY once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it. The industry leader for online information for tax, accounting and finance professionals. However, at one point in mid-November, GGPI stock was trading as high as $16.41. 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. 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. Shares of GGPI are down a little over 2% as of this writing. 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. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. In 2013, Polestar launched the Volvo S60 Polestar. If you owned common stock in the Company and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. Today's announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. Why Chubb Stock Is a Buy. Currently, this stock earns a B rating in my Portfolio Grader. The company is an established EV maker outside the U.S. but not headquartered in China. And Im not the only one. Ultimately, Tyler felt that waiting could get you a better entry point. While EV stocks were hot as recently as last fall, thats far from the case today. Okapis Bruce Goldfarb joins the podcast to discuss the new Universal Proxy Rules and what it means for investors and board members. Polestar Is The 9th SPAC Merger For The Gores Group: Here's How The Cookie Notice (). Recently, I also suggested that Matterport (NASDAQ:MTTR) was an excellent buy under $20. Attorney Advertising. In December, its currently down almost 16%. So far this year, there have only been 11 SPAC listings valued at $25 million or more. Copyright 2023 MarketWatch, Inc. All rights reserved. Still, I wouldnt view this as a reason to dismiss it as an investment opportunity. For 2022 and 2023, Polestar has guided to $3.2 B and $6.7B in sales, respectively. Gores Guggenheim and Polestar Announce Effectiveness of | GGPI Stock News As you might be aware, post-merger, Polestars existing shareholders will own, . The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. Ends. Mergers and Acquisitions Lightspeed Commerce Oper Chief Brandon Nussey Steps Down Shopping at Kroger can be up to four times cheaper than eating out, CEO says ACI 0.00% Broadcom stock moves. Banjo player, artist, and frittata-maker. He particularly enjoys creating model portfolios that stand the test of time. GGPI shares have been trading in a steady ~$11 range prior to day's announcement (shares are up 8% intraday). Our Standards: The Thomson Reuters Trust Principles. At the time of this writing, the stock is down 2.83% on the day, closing in on $11. This is a collection of 34 auto manufacturers, including Geely at a 3.22% weighting. Omg guys I saw GGPI merger in my smartphone notifications and my heart was pounding . Press question mark to learn the rest of the keyboard shortcuts. Lifes a beach for this Florida FIRE couple, Cant take statins? ggpi-10q_20210630.htm The technical storage or access that is used exclusively for statistical purposes. 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. Recently, I also suggested that, That company provides digital twins of properties. It doesnt matter if you have $500 in savings or $5 million. It was established to help Volvo win the Swedish Touring Car Championship. In fact, as its already reached the billion dollar mark in terms of sales, calling it early stage may be a misnomer. 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. Polestar's listing plan comes as automakers shift their focus to environment-friendly vehicles, amid rising pressure from lawmakers and investors concerned about climate change. in July and Gores brought $310 million in cash to the deal after redemptions. So naturally, theCEO had a lot to say on the subject. Additionally, a possible third alternative here is to buy the First Trust Nasdaq Global Auto Index Fund (NASDAQ:CARZ). 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. Si quieres personalizar tus opciones, haz clic en Gestionar configuracin de privacidad. Copy and paste multiple symbols separated by spaces. I also said that, at these prices, GGPI stock would, The critical distinction about Polestar is that its not a startup. Hedge funds sells stakes in Trump SPAC firm DWAC after merger news - CNBC Polestar SPAC Merger CONFIRMED! - Is GGPI a buy? - YouTube The Company has selected December 31 st as its fiscal year-end. . Rubicon Technologies (RBT) CEO Jevan Anderson resigned, Marblegate is merging with itself, and the rest of the days digest. Although its unclear whether it zooms or sits idle in the near-term, over a longer timeframe it could really take off. However, of the two, GELYY stock volumes are a little higher. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Novembers SPAC market review paints a picture of a SPAC market rushing towards the exit with high, and accelerating liquidations, more deal terminations, and almost no new SPAC IPOs. 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. We continue to like Polestars long term outlook and view the company as an emerging contender in the EV space.