The funding will be used to. Nordstroms off-price Rack stores are struggling. For the best MarketWatch.com experience, please update to a modern browser. Prior results do not guarantee a similar outcome with respect to any future matter. While EV stocks were hot as recently as last fall, thats far from the case today. Copyright 2023 InvestorPlace Media, LLC. After the merger, the combined entity. Not bad, given that, if it grows as expected, itll generate $17.6 billion in annual sales by 2025. Its a New Era for Tech Stocks. Polestar joins other EV makers in the public market, including Tesla (TSLA.O) and Lucid Motors (LCID.O), which went public in a $24 billion SPAC deal in February. Polestars listing gives investors access to an interesting opportunity, however. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. Joel Baglole for Data is a real-time snapshot *Data is delayed at least 15 minutes. Because if it runs as Polestar it will do so premarket. The Polestar deal will be supported by cash proceeds of around $800 million from Gores Guggenheim Inc, assuming no share redemptions by public stockholders of the blank-check firm. quotes delayed at least 15 minutes, all others at least 20 minutes. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. Still think GGPI is undervalued. The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina beginning next year. The good news for GGPI stock is that relatively speaking Polestar seems far less likely than peers to be one of those companies. Gores Guggenheim went public with its initial public offering (IPO) in March. Before today, GGPI stock traded at $10.84 per share, down about 7% year-to-date (YTD). Keep an Eye on Gores Guggenheim Stock, as it Gears Up for its EV Merger Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. After many months of wait, the tie-up between Gores Guggenheim and Polestar is nearing completion. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds . It doesnt matter if you have $500 in savings or $5 million. Mergers and Acquisitions news coverage - MarketWatch Create your Watchlist to save your favorite quotes on Nasdaq.com. Don't take it as financial . The factors still affecting EV stock performance could carry on in the months ahead. While retail investors on social media tend to focus on powertrain modes and the time from 0-60mph, Polestar management is focused on building a sustainable, dependable car. Despite being outside the top 10, its a reasonable amount of exposure. GGPI hasn't announced a definitive merger date with Polestar but the two companies expect to complete the business combination in the first half of 2022. It may not be until the supply chain issues are resolved. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. Copyright Novembers SPAC market review paints a picture of a SPAC market rushing towards the exit with high, and accelerating liquidations, more deal terminations, and almost no new SPAC IPOs. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, https://www.monteverdelaw.com/case/gores-guggenheim-inc, SHAREHOLDER ALERT: The M&A Class Action Firm Announces the Investigation of Adamis Pharmaceuticals Corp. - ADMP, SHAREHOLDER ALERT: The M&A Class Action Firm Announces the Investigation of Ranger Oil Corp. - ROCC. At least two hedge funds sold their stakes in Digital World Acquisition Corp. after that SPAC firm announced plans to merge with former President Donald Trump 's planned social media platform.. If you owned common stock in the Company and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. Our 3 Top Picks. Polestar SPAC Merger Makes GGPI Stock a Hot Item - InvestorPlace With all that said, your question is between taking the risk of GGPI tanking after merger vs maybe missing out a huge chunk of gains. Therefore, it might make sense to buy now before the merger, rather than afterwards. Amidst a proxy fight with Trian, Walt Disney Co. (DIS) announced that it will cut ~7k jobs as part of a $5.5B cost savings plan. Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). Create an account to follow your favorite communities and start taking part in conversations. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The SPAC merger deal was announced on Sept. 27, where GGPI SPAC agreed to merge with the Swedish private EV car maker Polestar. Still, I wouldnt view this as a reason to dismiss it as an investment opportunity. After a bustling 2021, the entire SPAC market has slowed markedly amid theglobal marketdownturn. As a result, I think its chances of survival are much higher than brands such as, On the date of publication, Will Ashworth. Join the Conversation! Right now investors are paying. Second, it currently trades at an attractive valuation relative to its prospects. GGPI / Polestar gaining momentum on 5-Year HTZ Deal The deal announcement stated it would close before June 30, 2022. GGPI Stock News. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. This announcement comes alongside ongoing Over-The-Air (OTA) updates that are delivering new features to Polestar 2 owners and pre-empts a future option to purchase a performance software upgrade that adds an extra 67-hp for the dual-motor variant. No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Market is a lot different now versus CCIV/LCID times. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. Once the deal is completed, Polestar will trade under the ticker symbol PSNY on the Nasdaq. Rubicon Technologies (RBT) CEO Jevan Anderson resigned, Marblegate is merging with itself, and the rest of the days digest. It is free and there is no cost or obligation to you. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. The vehicles will be produced at its new factory in Casa Grande, Arizona. Ends. Sure, its excellent that Polestar plans to be sportier, more focused on the driving experience, than it does on being a luxury ride, but these particular words didnt move me. From the day the Polestar 1 was launched, I have been a fan of the brands designs. As I stated in January, I think GGPI stock soon to be PSNY once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025. With that in mind, I continue to believe in Alec Gores real-world record of success with SPACs. It is the biggest blank-check merger in the EV sector since Lucid Motors struck a $24-billion deal with Michael Klein's Churchill Capital IV Corp. in February. I recommend taking an in-depth look at this company, its lineup of mass affluent and luxury EVs, and its game plan to take on Tesla (NASDAQ:TSLA), Lucid (NASDAQ:LCID), and the incumbent automakers looking to grab a piece of the electric vehicle market. Last year, a record 613 SPAC listings occurred on U.S. exchanges, raising a total of $145 billion. Polestar Is The 9th SPAC Merger For The Gores Group: Here's How The The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina from next year. Merging with Colombier Acquisition in $200M Deal. On May 25, the blank-check company formally announced the date on which shareholders will vote to approve the transaction (June 22). As a result, Geely owns 50.5% of Polestars equity while Volvo owns 49.5%. Accumulated other comprehensive incom . Bruce Ogilvie and Jeff Walker discuss Alliance Entertainment going public via Adara Acquisition Corp. (ADRA). We were listed in theTop 50in the 2018-2020 ISS Securities Class Action Services Report. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. We earn $400,000 and spend beyond our means. As a result, I think its chances of survival are much higher than brands such as Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN). SPAC Merger. Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, founded by Alec Gores, and by an affiliate of Guggenheim Capital, LLC. Im a big believer in Alec Gores, the chairman behind this SPAC. An analyst thinks theres a good chance that PayPal will make an acquisition in the next few months and runs through the most likely -- and least likely -- scenarios. We can put the money raised into developing the technology and the market," Thomas Ingenlath, Polestar's chief executive, said in an interview. Polestar, the Global Electric Performance Car Company, Signs Agreement If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. . Featured. For aggressive, long-term investors who seek exposure to electric vehicles and dont already own GGPI stock, it is an excellent name to buy. The company is an established EV maker outside the U.S. but not headquartered in China. A Division of NBCUniversal. Polestar have confirmed the previously rumoured SPAC merger with GGPI bringing the EV manufacturer to the NASDAQ with a valuation of $20 billion. At $11.20 it's $24 billion. Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. The industry leader for online information for tax, accounting and finance professionals. Both stocks are thinly traded over the counter. On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. But no matter when exactly the recovery begins, it may be worthwhile to lock down positions before it happens rather than after it happens. Para obtener ms informacin sobre cmo utilizamos tus datos personales, consulta nuestra Poltica de privacidad y Poltica de cookies. As reference, LCID, which is still in early production, trades at ~10x 2023E sales. DWACW (Digital World Acquisition) Owner Earnings per Share (TTM) as of today (March 02, 2023) is . We continue to view GGPI shares as undervalued heading into the merger. We continue to like Polestars long term outlook and view the company as an emerging contender in the EV space. ggpi-10q_20210630.htm At least, based on its success so far, and on future projections. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. However, for now, it seems to have its feet on the ground, providing investors with very reasonable growth projections. EV maker Polestar strikes $20-bln deal with Gores Guggenheim SPAC Availability is expected to begin in Spring 2022 in Europe and late 2022 in North America and Australia. Volkswagen's Scout to build $2 bln plant in South Carolina, Mercedes-Benz begins building battery recycling factory in southern Germany, Reporting by Krystal Hu in New York, Nick Carey in London, Sohini Podder and Anirban Sen in Bengaluru; Editing by Peter Cooney, Krishna Chandra Eluri and Shailesh Kuber, Tesla recalls 3,470 Model Y vehicles over loose bolts, Mexico can't match U.S. incentives for proposed Tesla battery plant, minister says, Ford looking at ways to boost gas-powered F-150 production, Rivian stands by 2023 production target despite media report, Nissan and Mexican workers agree to 9% raise at Morelos plant, union says, Media report that UAE considering leaving OPEC not true - sources, France's nuclear output hit by strike at EDF, As space junk threat grows, government and investors seek solutions, U.S. CDC issues advisory after confirmed measles case in Kentucky, Exclusive news, data and analytics for financial market professionals. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. 5 Penny Cryptos With the Most Potential for Growth, 3 Cream-of-the-Crop Growth Stocks to Buy for 2023, Gores Guggenheim Stock Will Pop Post Merger, But Theres Still Time to Buy. Polestar is unique in that while its not the flashiest vehicle, the companys main selling proposition is to make reliable cars without gimmicks. Fifty years from now, it might turn out that Polestars affiliation with Volvo did little to catapult it into the EV big leagues. Get this delivered to your inbox, and more info about our products and services. This deal received tremendous fanfare as the single-largest ever purchase for electric cars for 100,000 vehicles as well as a partnership with Uber (UBER) to provide 50,000 of those vehicles to its delivery drivers. In 2013, Polestar launched the Volvo S60 Polestar. Contact:Juan E. Monteverde, Esq.MONTEVERDE & ASSOCIATES PCThe Empire State Building350 Fifth Ave. Suite 4405New York, NY 10118United States of America[emailprotected]Tel: (212) 971-1341. Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. GGPI Stock Heats Up as Polestar SPAC Merger Closes - Nasdaq However, at one point in mid-November, GGPI stock was trading as high as $16.41. We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. The Car Design Award was established in 1984 by Fulvio Cinti, founder and editor-in-chief of Auto&Design for more than thirty years. API access to institutional grade SPAC database. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. Strong underwriting, an Asia expansion, and a history of consistent dividend raises make the shares attractive. At least 73 SPACs that had planned to go public this year have since been canceled due to deteriorating market conditions. Polestar said at the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan. Presumably, the deal, which will result in the company taking on the Polestar name, and GGPI stock becoming PSNY stock, will close not too long after that. Im 66, we have more than $2 million, I just want to golf can I retire? The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. However, GGPI stock drifted. AONs Aria Glasgow on Managing ESG and Human Capital Risk, Korn Ferrys Anthony Goodman on the Importance of Board Evaluations, Podcast: Getaround CEO Sam Zaid on Carsharing and Going Public, What to Know about Universal Proxy with Bruce Goldfarb of Okapi Partners, Podcast: Li-Cycles (LICY) Ajay Kochhar on Lithium Ion Battery Recycling and EVs, SPAC Podcast: Alliance Entertainment & Adara Acquisition. Even if its an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. The deal with Gores Guggenheim (GGPI.O) will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private investment in public equity, of $250 million from institutional investors. Heres what investors should know moving forward. Plus500. Initial orders are for the Polestar 2 sedan. Cision Distribution 888-776-0942 However, I also said that investors need not rush to buy the SPAC before the merger happens. Higher interest rates aren't deterring companies with high credit ratings from borrowing in the U.S. corporate bond market at a record clip in 2023. Click here for more information: https://www.monteverdelaw.com/case/gores-guggenheim-inc. Anticipation on GGPI/Polestar merger. This browser is no longer supported at MarketWatch. He was right. Post-merger, itll have a market capitalization of $21.8 billion. BA sits down with Aria Glasgow, Head of ESG Advisory at Aon, to discuss the intersection ESG and Human Capital and the risk for corporates. The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. In December, its currently down almost 16%. Broadcom continued to produce better results and forecast better near-term sales than Wall Street expects Thursday, and shares rose in extended trading. Gores Guggenheim (GGPI): Polestar Merger Should Entice EV Bulls See here for a complete list of exchanges and delays. The investigation focuses on whether GGPI and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by 1) failing to conduct a fair process, and 2) whether the transaction is properly valued. Anyways we could very well see 20-30$. This particular EV play is appealing for two reasons. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Silicon Valley Confronts the End of Growth. Get in Now on Tiny $3 Forever Battery Stock, Early Bitcoin Millionaire Reveals His Next Big Crypto Trade On Air. in July and Gores brought $310 million in cash to the deal after redemptions. He particularly enjoys creating model portfolios that stand the test of time. "We don't need the capital to build the factory. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Intraday data delayed at least 15 minutes or per exchange requirements. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. Since the Swedish electric vehicle (EV) manufacturer announced its merger. These symbols will be available throughout the site during your session. We live in purgatory: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. However, thats an entirely different subject than whether you should buy GGPI at todays prices. Copyright 2023 MarketWatch, Inc. All rights reserved. To the extent anyof the information contained herein may bedeemed to be investment advice, such information is impersonal and nottailored to the investment needs of any specific person. However, for now, it seems to have its feet on the ground, providing investors with very reasonable growth projections. As the deal approaches a close, GGPI shares have formed a solid base of support. Aug. 17 2021, Published 3:11 p.m. This is a collection of 34 auto manufacturers, including Geely at a 3.22% weighting. The latest deal will provide a key test of investor appetite for SPAC deals after other such transactions in the electric vehicle sector soured over the past few months. The company is headquartered in Sweden but manufactures its EVs in China. However, if you own, for China, South Carolina and Europe. Then I realized it was just a survey. Banking giant TD still wants to buy First Horizon a year after megadeal was announced, but the purchase price may drop, given lower sector valuations. Of course, shares of many EV companies are down this year, including market leader Tesla (NASDAQ:TSLA). EV maker Polestar going public via a SPAC with Gores Guggenheim. The technical storage or access that is used exclusively for statistical purposes. But its a very different market now, amidst a more tepid outlook for growth stocks. Critics of the practice include Warren Buffett. The decision is yours to make. So far this year, there have only been 11 SPAC listings valued at $25 million or more. I also said that, at these prices, GGPI stock would, The critical distinction about Polestar is that its not a startup. Barring unforeseen developments, Polestar ought to deliver considerable wealth to its patient shareholders in the future.. He lives in Halifax, Nova Scotia. Comprehensive research and analytics on every SPAC, sponsor, and deal. Lastly, the fact that Ingenlath doesnt want to be something to everyone suggests that he fully understands Polestars target market. Got a confidential news tip? The opinions expressed in this article are those of the writer, subject to the, 5 Hypergrowth Stocks With 10X Potential in 2023, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. Polestar looks to be a nich brand, which makes GGPI stock attractive here. Thereafter, our firm successfully preserved this victory by obtaining dismissal of a writ of certiorari as improvidently granted at the United States Supreme Court. On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. mostrar anuncios y contenido personalizados basados en perfiles de inters; medir la efectividad de los anuncios y el contenido personalizados, y. desarrollar y mejorar nuestros productos y servicios. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, butBoardroom Alphacannot guarantee its accuracy and completeness, and thatofthe opinions based thereon. Theres even room for more lines. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. GGPI shares have been trading in a steady ~$11 range prior to day's announcement (shares are up 8% intraday). Polestar Provides Next Glimpse of Polestar 3 and Reaffirms Growth Plans Banjo player, artist, and frittata-maker. Instead, it would be a niche producer of EVs. Investors also like the fact a global automotive giant backs Polestar. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Many EV enthusiasts see its focus on performance vehicles as a differentiator. However, according to Volvo, only 100 were made in the initial year. As you might be aware, post-merger, Polestars existing shareholders will own, . Gores Guggenheim Stock News and Forecast: GGPI stock sets - FXStreet First, despite its also-ran reputation, its one of the more promising early stage names in this space. Electric-car maker Polestar strikes $20-billion deal with Gores - CNBC Targeted companies such as Disney and Salesforce are learning how to grab the momentum back from activists, and communicate more effectively. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. Polestar itself is a joint venture between Volvo (OTCMKTS:VLVLY) and Geely (OTCMKTS:GELYY). February 28, 2023. Instead, get to know the company a little better. However, it was what he said Polestar is and isnt that caught my attention. On 11/4/2021 the company announced a proposed merger with TradeStation Group, Inc, who provides award-winning trading and . Its beginning dates back to 1996. GGPI Stock Will Pop Post Merger, But There's Still Time to Buy Build your trading network; Follow your favorite assets . The focus was entirely on internal combustion-powered vehicles. Oklahoma's governor set a special vote for March 7 after a pot referendum was pulled off the November ballot, and in Pennsylvania, a lawmaker launched new bill. Matterport merged with Gores Holdings VI back in July and Gores brought $310 million in cash to the deal after redemptions. It previously said it has another model in development called the Precept, which is a larger sedan. Check out our February podcast with CEO Thomas Ingenlath, and detailed analysis of GGPI here. However, what he said next did. Source: Jeppe Gustafsson / Shutterstock.com. Supply chain headwinds, which have resulted in EV makers walking back revenue and delivery targets, have played a role as well. The premium EV maker's offering includes two models a hybrid performance car known as Polestar 1 and a fully electric Polestar 2 which are currently on roads across Europe, North America and Asia. DWAC (Digital World Acquisition) Accumulated other comprehe Lorem ipsum dolor sit amet, consectetur adipiscing elit. Written by It is the biggest blank-check merger in the EV sector since Lucid Motors struck a $24-billion deal with Michael Klein's Churchill Capital IV Corp. in February. GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. Stock Prodigy Who Found NIO at $2 Says Buy THIS Now, Man Who Called Black Monday: Prepare Now.. Twitter Reports 40% Drop in Revenue and Adjusted Earnings to Investors: WSJ. At the end of November, I argued that GGPI stock was a better buy for aggressive investors than, f a stock is destined to be a long-term winner (five to 10 years out), there is no rush to run out and buy it. News, Media, rumors,and general discussion topics are welcome! GGPI/ Polestar revs up on HTZ Deal. DWAC Slammed by Elon's TWTR Stake. If you havent bought it, thats great news because you still have time to get in before GGPI takes off post-merger. Our Standards: The Thomson Reuters Trust Principles. The company, which delivered about 10,000 vehicles last year, said it expects to sell about 290,000 vehicles per year by 2025 and plans to launch three new models by 2024. Attorney Advertising. files S-4 for merger with Blade Therapeutics (BBTX). Will GGPI Stock Rise More After Polestar Merger Date in 2022?