Lordstown Motor’s Merger With the SPAC DiamondPeak (NASDAQ: DPHC) Expected To Be Formalized on the 22nd of October

Lordstown Motor's Merger With the SPAC DiamondPeak (NASDAQ: DPHC) Expected To Be Formalized on the 22nd of October

Lordstown Motors, an American EV manufacturer located in Ohio, is now on the verge of consummating its planned merger with the Special Purpose Conquering Company (SPAC), DiamondPeak (NASDAQ:DPHC). Once this concern combination achieves closure, the shares of the combined company volition list on the stock exchange under the symbol RIDE.

Every bit per the Class 8-K filed by DiamondPeak with the U.S. SEC today, the SPAC'due south shareholders volition vote on the proposed business combination with Lordstown Motors on the 22nd of October:

"DiamondPeak Holdings Corp. ("DiamondPeak") (NASDAQ:DPHC), appear today that it has called a special coming together of its stockholders (the "Special Meeting") for October 22, 2020 to, amid other things, approve the proposed business combination (the "Merger") with DiamondPeak, DPL Merger Sub Corp. ("Merger Sub"), and Lordstown Motors Corp. ("Lordstown"). Notice of the Special Meeting was mailed on October 8, 2020 to stockholders of record as of the close of business concern on September 21, 2020 (the "Record Date"). Due to concerns about the coronavirus (COVID-19), DiamondPeak will agree the Special Meeting solely by means of remote communication and provide for the power of stockholders to attend the Special Meeting past means of remote communication."

Comport in listen that Lordstown Motors entered into a definitive understanding to merge with DiamondPeak Holdings Corp. back in August. The bargain is expected to value the combined company at $1.6 billion, with a PIPE investment of about $500 million. Lordstown will use $675 million in gross proceeds from this deal to fund the production of its Endurance model, an electrical pickup truck that is expected to launch in 2021.

Readers should note that the Workhorse Group (NASDAQ:WKHS) owns a x pct stake in Lordstown, making it an integral beneficiary of this merger. Of course, today's announcement could non accept come at a amend time. As a refresher, the curt-seller Fuzzy Panda Inquiry accused Workhorse and, past extension, Lordstown Motors today for interim in a "far worse" manner than the embattled company, Nikola Corporation. The brouhaha pertains to expectations of Workhorse becoming a part of a $half dozen billion U.South. Postal Service (USPS) contract. As a refresher, the USPS is expected to engage multiple companies in lodge to supervene upon its aging fleet of commitment vehicles. The entire quantum of social club is expected to include as many every bit 180,000 delivery vans. While interested companies were required to submit their proposals to the USPS past the 14th of July, a final selection is yet to take place. However, Workhorse remains one of the leading contenders for the multi-billion-dollar contract.

Today, nonetheless, Fuzzy Panda Research published a damning report, leveling several allegations confronting Workhorse and Lordstown Motors. Primarily, the short-seller alleged that Workhorse was hyping up the benefits of winning the USPS contract even though whatever advantage would likely be immaterial. Autonomously from casting aspersions on the ability of Workhorse to deliver on its contractual obligations if it does win this contract, the short-seller alleged that Lordstown would be the prime beneficiary as Workhorse lacks the capacity to build USPS vehicles.

Finally, the short-seller attempted to shed a negative light on Lordstown's CEO, Steve Burns:

"Evaluating past deals nosotros detect a CopyCat entrepreneur who mimics topical ideas, misleads investors, and has decades of destroying investor upper-case letter with the same spider web of individuals. Burns is NOT the next Elon Musk merely certainly might exist a much more nefarious version of Trevor Milton."

Source

DiamondPeak shares are currently up over iii pct in extended after-hours trading following today's seminal proclamation.

Source: https://wccftech.com/lordstown-motors-merger-with-the-spac-diamondpeak-expected-to-be-formalized-on-the-22nd-of-october/

Posted by: vaughnhatic1985.blogspot.com

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