EV Maker Fisker To Make NYSE Trading Debut Today After SPAC Merger

Electric vehicle maker Fisker Inc announced Thursday it has completed a reverse merger with the blank check company Spartan Energy Acquisition Corp (NYSE: SPAQ).

What Happened: Both companies will merge in a business combination to create a new entity whose Class A common stock will list on the New York Stock Exchange under the symbol "FSR." Through the reverse merger, Fisker has gained access to $1 billion in cash inflows.

Spartan is funded by an affiliate of private equity giant Apollo Global Management Inc. (NYSE: APO).

With the funding and strategic tie-ups in place, CEO and Chairman Henrik Fisker remarked, “ We can now fully turn our attention to developing and launching the revolutionary, all-electric Fisker Ocean into the heart of the midsize SUV market.”

Earlier this month, Fisker and Magna International (NYSE: MGA) partnered to manufacture the all-electric SUV model Ocean, and production is expected to commence towards the end of 2022.

Why Does It Matter: Special Purpose Acquisition Companies or SPACs are gaining more traction in the EV segment.

Lordstown Motors Corp merged with DiamondPeak Holdings Corp (NASDAQ: DPHC) in August. Stocks of the merged entity are listed on Nasdaq under the symbol RIDE, which gained 5% during Thursday’s trading hours.

In early June, Nikola Corp (NASDAQ: NKLA) announced a merger with SPAC VectoIQ.

Price Action: After a 2.61% fall during Thursday’s trading session, SPAQ gained 1.79% in the after-hours to close at $9.12.

See Also: Jim Cramer Compares Fisker And Its CEO To Nikola, Trevor Milton