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. Assuming it hits its growth targets, delivering a six-figure amount of vehicles annually, and generating tens of billions in annual sales, within three years. So far this year, there have only been 11 SPAC listings valued at $25 million or more. Volvo said on Monday it will make additional equity investments in Polestar of up to $600 million and is expected to hold about 50 percent of the combined company. Polestar touts an asset-light business model as a key differentiator by having existing productions lines provided by backers Volvo and Geely, so it can focus on investing in research. However, GGPI stock drifted. In fact, he should be used by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler as an example of the good accomplished with blank-check names. Despite being outside the top 10, its a reasonable amount of exposure. Supply chain headwinds, which have resulted in EV makers walking back revenue and delivery targets, have played a role as well. Real-time alerts, yields, red flags, filings, investors, and much more. 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. The technology is used widely in the vacation rental industry. We continue to view GGPI shares as undervalued heading into the merger. Our Standards: The Thomson Reuters Trust Principles. Polestar itself is a joint venture between Volvo (OTCMKTS:VLVLY) and Geely (OTCMKTS:GELYY). Attorney Advertising. February 28, 2023. Fifty years from now, it might turn out that Polestars affiliation with Volvo did little to catapult it into the EV big leagues. Insurance Doesnt Have to Be Boring. Yet while its made this major progress, its not resulting in a big move for shares. You might even get a better price in the process., Around the same time as my article, fellow, Chris Tyler argued that technical analysis of the stock suggested the beginning of December. Colombier was founded by Omeed Malik, founder and CEO of Farvahar Partners. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. We earn $400,000 and spend beyond our means. The contrast between the stock buildup of CCIV/LCID versus GGPI/PSNY is readily apparent. Before today, GGPI stock traded at $10.84 per share, down about 7% year-to-date (YTD). Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Also, dont base a decision to buy or not just on a surface level view of the company. Sign up for free newsletters and get more CNBC delivered to your inbox. Initial orders are for the Polestar 2 sedan. In what stands to be a pivotal year for the future of the market, we recap January. As you might be aware, post-merger, Polestars existing shareholders will own 94% of the company. did not have (either directly or indirectly) any positions in the securities mentioned in this article. 86% of retail CFD accounts lose money, Registration on or use of this site constitutes acceptance of our, Stock Prodigy Who Found NIO at $2 Says Buy THIS. This particular EV play is appealing for two reasons. This is a collection of 34 auto manufacturers, including Geely at a 3.22% weighting. 1125 N. Charles St, Baltimore, MD 21201. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ:GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. 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. Ultimately, Tyler felt that waiting could get you a better entry point. See here for a complete list of exchanges and delays. Reddit and its partners use cookies and similar technologies to provide you with a better experience. SPAC Merger. 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. Special purpose acquisition company (SPAC) Gores Guggenheim (NASDAQ: GGPI) continues to be on schedule with its planned merger with electric vehicle (EV) maker Polestar. The company's listing plan comes as automakers shift their focus to environmentally friendly vehicles amid rising pressure from lawmakers and investors concerned about climate change. Puedes cambiar tus opciones en cualquier momento haciendo clic en el enlace Panel de control de privacidad de nuestros sitios y aplicaciones. . In turn, GGPI stock has fallen back to its original SPAC price of $10 per share. All rights reserved. Also, over the years the firm has recovered or secured over a dozen cash common funds for shareholders in mergers & acquisitions class action cases. If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. American Airlines (AAL) announces its new chairman of the board as Gregory D. Smith, the former CEO of Boeing (BA). The good news for GGPI stock is that relatively speaking Polestar seems far less likely than peers to be one of those companies. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. Boardroom Alpha does not accept any liability for any direct,indirector consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed. DWAC (Digital World Acquisition) Accumulated other comprehensive income (loss) as of today (March 02, 2023) is $0.00 Mil. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Si quieres personalizar tus opciones, haz clic en Gestionar configuracin de privacidad. Ultimately, Tyler felt that waiting could get you a better entry point. Ive learned in recent years that businesses operating in the middle have less chance of success. Featured. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds . 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. We continue to like Polestars long term outlook and view the company as an emerging contender in the EV space. Labor representatives at a Nissan Motor Co Ltd plant in the central Mexican state of Morelos have reached an agreement with the Japanese carmaker to hike pay 9% as of April, the union said. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. 2023 InvestorPlace Media, LLC. Privacy Notice | $GGPI $PSNY @Polestar introduces Tech and Design updates on Polestar 2 The battery is improved increased cell chemistry that provides a higher capacity -This leads to increased range,faster charging, and higher motor output in addition to the design element changes listed in the article company, and Gores Guggenheim, Inc. ("Gores Guggenheim") (Nasdaq: GGPI, GGPIW and GGPIU), a special purpose acquisition company ("SPAC") formed by affiliates of The Gores Group and Guggenheim Capital, LLC, announced today that they have entered into a definitive business combination agreement (the "Business Combination Agreement"). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Additionally, a possible third alternative here is to buy the First Trust Nasdaq Global Auto Index Fund (NASDAQ:CARZ). Thats well above where it currently trades under the $11.50 level. Polestar / Gores Guggenheim Inc.(GGPI) made a splash this morning, announcing a partnership with Hertz (HTZ) that includes purchasing up to 65,000 electric vehicles (EVs) over five years. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Instead, it would be a niche producer of EVs. GGPI Stock News. The Polestar deal will be supported. Polestar looks to be a nich brand, which makes GGPI stock attractive here. Polestar CEO Thomas Ingenlath recently discussed the companys plans with Automotive News. Press J to jump to the feed. As a result, I think its chances of survival are much higher than brands such as Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN). However, of the two, GELYY stock volumes are a little higher. Anyways we could very well see 20-30$. For the company going public, a SPAC merger serves as an alternative to a traditional IPO. Second, it currently trades at an attractive valuation relative to its prospects. 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. 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. Again, such middling performance could carry on, before and after the deal closing. Mr. Monteverde is recognized by Super Lawyers as a Rising Star in Securities Litigation in 2013, 2017-2019, an award given to less than 2.5% of attorneys in a particular field. However, at one point in mid-November, GGPI stock was trading as high as $16.41. It predicts it will rake in $1.6 billion in revenue this year and double that number next year. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. Heres why you should consider them. It was a slower month to kick off the year for SPACs. And Im not the only one. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. Polestar have confirmed the previously rumoured SPAC merger with GGPI bringing the EV manufacturer to the NASDAQ with a valuation of $20 billion. For 2022 and 2023, Polestar has guided to $3.2 B and $6.7B in sales, respectively. Create your Watchlist to save your favorite quotes on Nasdaq.com. The critical distinction about Polestar is that its not a startup. 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. Matterport merged with Gores Holdings VI back in July and Gores brought $310 million in cash to the deal after redemptions. The focus was entirely on internal combustion-powered vehicles. Swedish electric-car maker Polestar said on Monday it will go public by merging with a U.S.-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of $20 billion. All rights reserved. Polestar intends to list on the Nasdaq in a proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in June 2022. We were listed in theTop 50in the 2018-2020 ISS Securities Class Action Services Report. Around the same time as my article, fellow InvestorPlace contributor Chris Tyler argued that technical analysis of the stock suggested the beginning of December wasnt the time to buy either. On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. either via e-mail at [emailprotected] or by telephone at (212) 971-1341. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. It previously said it has another model in development called the Precept, which is a larger sedan. Enthusiasm about the. About the Car Design Award. 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. 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. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. However, over a longer timeframe, it could zoom to price levels well above $20 per share. I think this stock may continue to trade in the low teens until the de-SPAC merger happens in 2022. We live in purgatory: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. But its a very different market now, amidst a more tepid outlook for growth stocks. It will also have a more daring design, InsideEVs reported Ingenlaths comments. The vehicles will be produced at its new factory in Casa Grande, Arizona. Ventoux CCM Acquisition Corp. . 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. It formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. As we move into the merger vote, we think GGPI should be trading closer to $20.