Xos Trucks Inc., the North Hollywood, California-based electric truck start-up, had been in an advanced stage talk with an SPAC (Special Purpose Acquistion Company) NextGen Acquistion Corp in order to go public which in effect could value the firm at a whopping $2 billion, joining a growing list of tech start-ups which had bypassed the conventional IPO routes to go public over the recent past, a press agency report published late on Monday had unveiled citing unnamed sources who wished to remain anonymous.
Aside from that, followed by the reveal of media topline, shares’ prices of NextGen had surged as much as 12 per cent to $11.69 in morning US trading hours before trading was halted due to extreme volatility, however, when trading resumed at late-afternoon trading, NextGen shares were trading 34 per cent higher to $14 apiece.
Nonetheless, while being asked over the subject-matter, neither Xos Trucks Inc nor NextGen agreed to comment.
Electric truck maker Xos in merger talks with NextGen in bids to go public
Apart from that, the press agency report had also quoted sources familiar with the issue as saying that the blank-check acquisition company, NextGen, had been in talks with investors about arrangement of a fundraising campaign for the deal in form of a private investment in public equity (PIPE), while if the merger talks between NextGen and Xos would become successful, an accord could be released as early as by this month.
In factuality, SPACs (Special Purpose Acquistion Company) or blank-check firms are shell entities that could be capitalized on to take a company public following merger or acquisition, while SPACs were allowed to raise funds in equity markets without telling their investors about the firm they were pursuing.
The North Hollywood, California-based Xos Truck Inc. that reformed itself from Thor back in the 2019s, manufactures wide-ranging electric trucks particularly aimed at replacing equivalent diesel vans. Xos has a relatively long list of high-profile customers including US-based package delivery service provider United Parcel Carrier Inc (UPS) alongside cash-handling firm Loomis.