Lordstown Motors Corporation, a startup developing an all-electric pickup truck serving the commercial fleet market, merged with DiamondPeak Holdings Corporation, a special purpose acquisition company (SPAC). The combined entity will trade on the NASDAQ exchange under the ticker symbol “RIDE.”
The $1.6-billion transaction provides Lordstown Motors with $675 million of gross proceeds.
In November 2019, the Lodstown Motors acquired the Lordstown Complex, formerly a General Motors Corporation (GM) factory. Lordstown Motors will use the site to build the Endurance, its flagship fully-electric full-size pickup truck designed specifically to serve the commercial fleet market.
The electric powertrain Endurance delivers the equivalent of 75 miles per gallon, an estimated 250 miles per charge, and an anticipated 7,500-pound towing capacity, all of which has been systematically engineered and competitively priced for large commercial fleets.
The Endurance is equipped with hub motors and software in an integration that delivers a “motor and mind” in each wheel. This simplicity results in just four moving parts in the drivetrain, as compared to more than 2,000 in vehicles utilizing a traditional internal combustion engine. The design significantly increases reliability, maximizes performance, and reduces total cost of ownership.
The $1.6-billion transaction provides Lordstown Motors with $675 million of gross proceeds that will be used to fund production of the Endurance and its innovative in-wheel electric hub motor design. The financing and concurrent listing was achieved through a merger with the DiamondPeak SPAC, and a $500 million fully committed PIPE, which includes $75 million of investments by GM, in addition to investments from leading institutional investors such as Fidelity Management & Research Company LLC, Wellington Management Company LLP, Federated Hermes Kaufmann Small Cap Fund, and funds and accounts managed by BlackRock, among others.