- Daily Zen
The innovative automaker Henrik Fisker has found an investor in Spartan Energy to help him put his dream EV Ocean into production.
Fisker Inc. and Spartan Energy Acquisition Corp., a special purpose acquisition company and an affiliate of Apollo Global Management, entered into a deal that valued Fisker at $2.9 billion and will result in the EV manufacturer becoming a public company.
Fiscal is a start-up manufacturing electric vehicle-based in California and the transaction will bring in the necessary funding for it to go into the production of its Fisker Ocean and launch it by late 2022.
Fisker said it had a net loss attributable to shareholders of $10.4 million in 2019, compared with a net loss of $4.7 million in 2018. It had $1.9 million in cash and cash equivalents last year.
Fisker’s entry into the stock market is timely as Tesla and Nikola are both doing well at the bourses and investors are showing confidence in their sustainability feature.
The Fisker Ocean is a fully electric SUV, which was showcased at the Consumer Electronics Show earlier in 2020, and has some numerous awards for its use of eco-friendly and sustainable material in the design.
Fisker Ocean has a claimed range of more than 300 miles and a design that “lowers and slides nine glass windows and panels to open the entire cabin.” This mode is sure to grab the attention of car aficionados.
Fisker has used materials made from recycled fishing nets and ocean plastics. Founder Henrik Fisker is the ex-design chief of Aston Martin. He designed the stunning BMW Z8. He launched his own brand through a startup in 2009 and brought out the Fisker Karma, a beautiful extended-range electric grand tourer. Sadly it went out of production within a year only. But his Karma left a lasting impression enough for him to come back with the new Fisker Ocean.
The Fisker Ocean will be available to consumers through an innovative leasing package, optimized for driver convenience and accessibility.
Fisker Inc. company Founder, Chairman and Chief Executive Officer, Henrik Fisker, said: “We are excited to partner with Apollo, a world-class financial institution that brings deep industry expertise, extensive global relationships and a shared commitment to ESG…Drivers of the Fisker Ocean SUV will also benefit from our unique flexible lease program that maximizes affordability while delivering unrivaled ownership flexibility. Deployed through our proprietary app, our leasing model has been designed to appeal to customers looking for the ultimate in sustainable mobility and freedom from traditional and restrictive leasing programs.”
“Going public through a SPAC allows the company to raise proceeds in a timely and cost-efficient manner,” said David Kudla, CEO of Mainstay Capital Management. “Whether or not Fisker can become profitable and cash flow positive with a $40,000 EV SUV remains to be seen.”
Geoffrey Strong, chairman and chief executive officer of Spartan and senior partner, co-head of infrastructure and natural resources at Apollo, said, “Henrik has an unparalleled and world-renowned design track record and is supported by an expert management team with storied careers in the automotive industry. The right team, combined with deep financial resources provided by this transaction, further position the company to succeed in a rapidly growing industry.”
The boards of directors of both Spartan and Fisker have approved the proposed transaction, which is expected to be completed in the fourth quarter of 2020.
Advisors Cowen is serving as financial advisor, and Orrick Herrington & Sutcliffe LLP is serving as legal advisor to Fisker. Cowen, Credit Suisse and Goldman Sachs are serving as co-placement agents on the PIPE offering. Citi and Goldman Sachs are serving as financial advisors, and Vinson & Elkins LLP is serving as legal advisor to Spartan Energy Acquisition Corp.