Lordstown Motors will go public by merging with DiamondPeak Holdings

Marco Green
August 4, 2020

Lordstown has been working on a new full-size electric pickup truck called Endurance and past year hired Rich Schmidt, a former director of manufacturing at Tesla, as chief production officer.

DiamondPeak Holdings will merge with Lordstown Motors in a deal that values the Ohio-based electric vehicle maker at $1.6 billion.

Lordstown Motors is the latest EV startup in recent months to announce plans to go public. Electric vehicle makers Nikola Corp. and Fisker Inc. saw their stocks skyrocket after going public via reverse mergers with SPACs earlier this year.

DiamondPeak shares were trading 11.82% higher in Monday's premarket session.

The Ohio company will follow in the footsteps of fellow EV startups Nikola and Fisker by merging with a special objective acquisition company whose shares are already publicly traded, in this case DiamondPeak Holdings Corp. which is listed on Nasdaq.

When finalized, approximately $675 million of gross proceeds will be used to fund the production of the Endurance, the first full-size electric pick-up truck created to serve primarily commercial fleet.

Lordstown Motors was originally owned by Workhorse, but it was eventually spun off as a separate company. Lordstown Motors acquired in November the 6.2 million-square-foot factory from GM.

The company said it was able to raise $500 million in private investment in public equity, or PIPE, including a $75 million investment by General Motors.

Unveiled June 25, the Lordstown Endurance is billed as the first electric work truck aimed at fleet buyers. Lordstown Motors is an offshoot of Burns' other company, Workhorse Group, a battery-electric transportation technology company that is also a publicly traded company. Other institutional investors that joined included Fidelity Management & Research Company, Wellington Management Company, Federated Hermes Kaufmann Small Cap Fund and funds and accounts managed by BlackRock.

DiamondPeak soared as much as 29% to $13.20 in Monday pre-market trades after the merger was announced.

The transaction is expected to close in the fourth quarter of 2020.

Other reports by Click Lancashire

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