Fisker Inc. said Thursday it completed a deal to go public by merging with a special-purpose acquisition company, with the proceeds funding operations and development of its first electric vehicle through the start of production in late 2022.
Shares of the combined company are expected to trade on the New York Stock Exchange starting Friday under the ticker symbol FSR.
The transaction with Spartan Energy Acquisition is expected to give Fisker more than $1 billion of cash on the balance sheet and no funded debt, the company said. Spartan is a SPAC, or a shell company, that raises money through an initial public offering to buy an operating entity, typically within two years. SPACs have emerged as a quick route to the stock market for companies, particularly auto technology startups.
Fisker this month cemented an agreement with Canadian supplier Magna International, which will supply the vehicle platform and build the electric automaker's Ocean SUV at a plant in Graz, Austria.
As part of the deal, Magna will receive warrants to purchase a stake of up to 6 percent in Fisker.
"All the external pieces are now in place to execute our unique, asset-light business strategy, with today's funding and the strategic cooperation announced with Magna on Oct. 15," CEO Henrik Fisker said in a statement. "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, expected to commence in Q4 2022."
Pricing on the Ocean is expected to start at $37,499.
Reuters contributed to this report