A brand new electrical truck SPAC known as Lordstown is forming and the shares are surging
The Lordstown Motors Corp. Endurance electrical pickup truck is displayed throughout an unveiling occasion in Lordstown, Ohio, U.S., on Thursday, June 25, 2020.
Matthew Hatcher | Bloomberg | Getty Photos
Shares of DiamondPeak Holdings, a particular goal acquisition firm, jumped greater than 20% throughout premarket buying and selling on Monday after the corporate introduced that it’s going to merge with electrical automobile firm Lordstown Motors. The mixed firm will commerce on the Nasdaq beneath the brand new image “RIDE.”
The deal represents two areas of explicit investor curiosity this yr: particular goal acquisition corporations (SPACs), in addition to electrical automobile start-ups.
SPACs are also called blank-check corporations, since buyers fork over cash with out realizing when, and even what for, their capital will probably be used. As soon as the SPAC goes public, the purpose is then for it to accumulate or merge with a personal firm, thereby taking it public.
Amid market uncertainty and a lackluster IPO market, SPACs are on tempo to lift a…