Polestar announces completion of merger with SPAC, raising $890 million

Gasgoo, June 23, Polestar and Special Purpose Acquisition Company (SPAC) Gores Guggenheim announced the completion of a business combination that will retain the Polestar name and will take effect on June 24, 2022. Starq started trading under the new ticker symbol "PSNY".On June 22, the merger of the two businesses was approved at a special meeting of Gores Guggenheim shareholders.

Post-merger, Polestar has raised about $890 million in total proceeds, with about $640 million from Gores Guggenheim and the remaining $250 million from top institutional investors.

"Listing on the Nasdaq is a very proud moment for Polestar," PolestarCEO Thomas Ingenlath said in a statement. Continuing the transformation of mobility.”

Image credit: Polestar

Bernstein analyst Daniel Roeska said in a note to investors that the listing will "test market interest in high-performance and pure electric vehicle sub-brands.""The Polestar is Volvo Cars' BMW M or Mercedes-AMG," he noted.

Once listed, Volvo Cars will hold a 47.2 percent stake in Polestar, while Geely founder Li Shufu will hold 39 percent, according to Roeska's estimates.On June 23, Volvo Cars praised, "In a volatile capital market environment, the listing of Polestar is of great significance." Polestar will use the funds to continue investing in expanding products and businesses, and expanding in new markets.

Jim Rowan, CEO of Volvo Cars, said: “Polestar is our sub-brand and an important business partner. We want to be fully electrified by 2030 and shape the future of mobility, and Polestar plays a role in our strategy. key role.”

Polestar first announced plans to list on Nasdaq alongside Gores Guggenheim last September.