Polestar and Gores Guggenheim, a special purpose acquisition company (SPAC), expect to formalise their pairing this week, and raise around $850 million ($1.2b) for product development, R&D, and footprint growth.
The merger is expected to close this Thursday, pending Gores Guggenheim stockholder approval following a meeting of the SPAC’s stockholders.
Polestar’s common stock should begin trading on the Nasdaq from June 24 under the new ticker symbol ‘PSNY’. Startup EV IPOs have cooled lately, yet it’s all systems go.
The funding injection comprises fully committed private investment in public equity (PIPE) as well as cash held in trust, Polestar says.
The raise will assist the Sweden-based EV brand, founded by Volvo and Zhejiang Geely Holding Group, with its aggressive growth plans comprising one model launch per year.
It currently sells the Polestar 2 sedan in Europe, North America, China and the Asia Pacific including Australia, where it arrived last year. It recently signed a deal with Hertz to supply 65,000 of them for rentals, bolstering scale.
Next comes the much-teased Polestar 3 SUV, which will share its bones with the Volvo XC90 successor and launch in October 2022.
Polestar says it wants to produce a truly climate-neutral car by 2030.
Polestar cars are currently manufactured in two facilities in China, with additional future manufacturing planned in the USA.
Polestar CEO Thomas Ingenlath called the paired listing “a milestone moment for the company”.
“Our team has been working hard and that work is paying off. We are excited about the future of Polestar and will continue to build world-class electric cars, grow the passionate customer community and expand into even more markets around the globe,” he added.
Gores Guggenheim chairman Alec Gores said: “To have limited redemptions in this challenging macro environment is an incredible feat and speaks to the strength of Polestar’s brand – as well as the high conviction our investors have in Polestar’s potential”.
“We are proud of the momentum Polestar has built over the past several months and we look forward to the expected closing of our business combination this week.”
Polestar is expected to boost sales to 290,000 by 2025, up from 29,000 last year, and hopes to break even in 2023