Canoo, the Los Angeles-based electric vehicle startup, has struck a deal to merge with special-purpose acquisition company Hennessy Capital Acquisition Corp., with a market valuation of $2.4 billion.
The announcement Tuesday marks the fourth time this summer that an electric vehicle company has skipped the traditional IPO path and instead taken the company public through a merger agreement with a SPAC, also known as blank check companies. Nikola Corp., Fisker Inc. and Lordstown Motors have also gone public — or announced the agreement to — via a SPAC.
Canoo said it was able to raise $300 million in private investment in public equity, or PIPE, including investments from funds and accounts managed by BlackRock. Through the transaction, Canoo said it will have about $600 million