{"id":8094,"date":"2021-09-29T17:24:52","date_gmt":"2021-09-29T17:24:52","guid":{"rendered":"http:\/\/TheNextWeb=1368388"},"modified":"2021-09-29T17:24:52","modified_gmt":"2021-09-29T17:24:52","slug":"polestars-spac-brings-its-value-to-a-mammoth-20-billion","status":"publish","type":"post","link":"https:\/\/www.londonchiropracter.com\/?p=8094","title":{"rendered":"Polestar\u2019s SPAC brings its value to a mammoth $20 billion"},"content":{"rendered":"\n

Swedish electric car maker Polestaris the latest company planning a deal to go public through a special purpose acquisition company (SPAC)<\/span><\/span>. A deal with Gores Guggenheim Inc will raise a whopping $20 billion. <\/span>As a result, Polestar gains three times<\/i> its projected revenues for 2023.<\/span><\/p>\n

Some history and context. Polestar<\/a> is jointly owned by Volvo Cars and Chinese auto company Geely. Following the success of the Polestar 1 and 2 EVs, the company raised in April $550 million in external funding and plans to build the Polestar 3 SUV at Volvo\u2019s U.S. plant,  in the second half of 2022. <\/span><\/p>\n

The also company plans to launch two additional new models by 2024, and expand its global distribution footprint to 30 markets by 2023.<\/span><\/p>\n

Okay, so what\u2019s a SPAC?<\/span><\/h2>\n

A special purpose acquisition company (SPAC) is a shell company formed explicitly <\/span>to raise money through an IPO, in order to acquire an existing company. Investors also call them \u201cblank check companies.\u201d <\/span><\/p>\n

(FYI: An IPO is an initial public offering where a company offers shares for the first time to raise money from public investors.)<\/span><\/p>\n

A SPAC provides no commercial operations. They make no products and sell nothing. A SPAC typically has two years to complete an acquisition, or they must return their funds to investors.<\/span><\/p>\n

SPACs are generally formed by investors focused or experienced with a particular sector who are closely knowledgeable about trends and tech. <\/span><\/p>\n

What\u2019s the big deal? <\/span><\/h2>\n

SPACs have grown in popularity over the last few years. <\/span>According to Pitchbook<\/span><\/a>, Q1 2021 saw 325 SPAC deals issued, compared to 276 deals in 2020 and 83 in 2019.<\/span><\/p>\n

And a lot of these deals have been taking place in the mobility industry.<\/p>\n

\"a
<\/i><\/a>A snapshot look at the SPAC mobility landscape<\/figcaption>