Polestar Expected to Raise $850 Million Through SPAC Merger, Trade as ‘PSNY’
A special purpose acquisition company (SPAC) merger is set to go through with Polestar this week, putting the Swedish automaker (owned by Volvo and Chinese parent Geely) on the Nasdaq as soon as Friday.
Polestar and Gores Guggenheim are expecting to raise $850 million through the SPACE merger, according to statements from the companies on Tuesday.
For Polestar to be listed on the Nasdaq by Friday, the companies will have to close the merger by Thursday — which is expected to happen, subject to approval from Gores Guggenheim stockholders.
Sources familiar with the deal told Automotive News on Tuesday they only expect preliminary redemption elections to reach 25 percent at most, with lower numbers meaning better redemptions as to the extent of shareholders backing the deal.
This year, SPAC mergers average an 83 percent redemption rate, with only three of 42 that have taken place this year earning a redemption rate below 50 percent.
Polestar Begins Delivering First Electric Vehicles to Hertz https://t.co/aJhecGXcha
— TeslaNorth.com (@RealTeslaNorth) June 9, 2022
In a press release, 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.”
Polestar has been discussing a SPAC merger deal since last September, with plans to hit the Nasdaq via Gores Guggenheim.
Earlier this month, Polestar also announced the Polestar 3 electric SUV, set to hit markets this October.