Electric-car maker Fisker Inc. is hoping to ride twin waves of investor interest in electric vehicles and blank-check companies to get its first vehicles onto roads in a couple of years.
Fisker and Spartan Energy Acquisition Corp., a special purpose acquisition corporation, or blank-check company backed by Apollo Global Management Inc. announced their merger on Monday. The deal valued Fisker at $2.9 billion and it is expected to close in the fourth quarter.
Fisker said it had a net loss attributable to shareholders of $10.4 million in 2019, compared with a net loss of $4.7 million in 2018. It had $1.9 million in cash and cash equivalents last year.
Fisker’s IPO is “timely” as it is taking advantage of Tesla Inc. share rally “and the PR blitz” of electric-truck maker Nikola Corp., said David Kudla, CEO of Mainstay Capital Management.
“Going public through a SPAC allows the company to raise proceeds in a timely and cost efficient manner,” he said. “Whether or not Fisker can become profitable and cash flow positive with a $40,000 EV SUV remains to be seen.” …
... Fisker has said its “‘emotional design’ will be the way his vehicles stand out in a crowded EV market,” Mainstay’s Kudla said. …