Burlingame’s electric-bus maker Proterra seeks public listing via $1.6bn SPAC deal



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Burlingame’s electric-bus maker Proterra seeks public listing via $1.6bn SPAC deal

Proterra Inc., the California-based American automotive and energy storage start-up that primarily centres its focuses on designing and manufacturing electric transit buses alongside their charging system, had agreed to a US public listing via a $1.6 billion merger deal with ArcLight Clean Transition Corp including debt, a Boston-based blank-check company or an SPAC (Special Purposes Acquisition Company), joining a string of US public listings last year that preferred an SPAC-route to go public instead conventional IPOs (Initial Public Offerings).

In point of fact, Special Purpose Acquisition Company (SPAC) or a blank-check firm could be referred to a shell corporation that could take a company public following merger or acquisitions, however, blank-check firms are allowed to raise capitals for potential mergers in IPOs without telling their investors about the company they have been pursuing.

Nevertheless, the California-based electric bus maker, Proterra Inc’s latest move to go public through a $1.6 billion merger deal with a Boston-based blank-check firm, would provide the 16-year-old start-up with a $648 million in fresh capitals alongside another $415 million from deep-pocket investors such as Daimler Trucks, BlackRock Inc., Fidelity Management, Franklin Templeton alongside venture capitalist Chamath Palihapitiya.

Besides, followed by the announcement made late on Tuesday, Nasdaq-listed shares’ prices of the blank-check firm ArcLight jumped nearly 100 per cent to $23.4 per share on post-market trading, however, wrapped up Wednesday market down by 8.73 per cent to $23.00 per share.

Notably, the Boston-based blank-check firm, ArcLight Clean Transition, raised about $250 million in an IPO last year.

Electric bus maker Proterra seeks Nasdaq listing via $1.6bn SPAC merger

Apart from that, as a spokesman for Proterra Inc.

was quoted saying that the $1.6 billion merger deal would likely to be concluded by the first half of 2021, Proterra Inc. said in a statement that the company would be listed in Nasdaq under a ticker symbol “PTRA” followed by a closure of the merger deal.

Burlingame-headquartered Proterra Inc. was founded back in the 2004s in Golden, Colorado by a mechanical engineer Dale Hill, while the Californian electric bus-maker’s Catalyst series includes buses ranging from 35 to 40 feet alongside several kinds of battery configurations.