Swedish electric car company Polestar and Gores Guggenheim (GGPI), a special purpose acquisition company (SPAC), closed their merger deal on June 23.
The combined company will retain the Polestar name and will commence trading on the Nasdaq under the new ticker symbol “PSNY” on June 24.
The Nasdaq trading announcement comes after record YTD sales for the company, large interest in and orders for the Polestar 2, and growth in six new markets. Polestar will ring the opening bell at Nasdaq on June 28 to celebrate its debut as a publicly traded company.
“This is a hugely proud moment for the entire team at Polestar,” said Thomas Ingenlath, CEO of Polestar, in a news release. “We will now open a new chapter in our story that can be summarized in one word – growth. By 2025 we aim to be selling 290,000 cars per year, 10 times as many as we sold in 2021. We already have a real and successful business; this listing gives us the funds and platform to help deliver our ambitious future plans and drive industry-leading sustainability goals forward.”
The transaction with Gores Guggenheim is expected to raise at least $850 million in gross proceeds though a combination of a fully committed PIPE and cash held in trust, according to a Polestar news release. The cash held in trust accounts for a maximum 25% in preliminary redemption elections and assumes none of such preliminary redemption requests are withdrawn.
“To have limited redemptions in this challenging macro environment is an incredible feat and speaks to the strength of Polestar’s brand – as well as the high conviction our investors have in Polestar’s potential,” said Alec Gores, chairman of Gores Guggenheim. “We are proud of the momentum Polestar has built over the past several months and we look forward to the expected closing of our business combination this week.”
The meeting of GGPI stockholders and the meeting of the company’s warrant holders was held on June 22.