Shares of blank-check business 10X Cash Undertaking Acquisition (NASDAQ:VCVC) are surging in pre-current market trading on Wednesday. VCVC inventory was up additional than 41% as Nasdaq futures were being poised to guide the broader indices bigger.
What is driving the jump? The special function acquisition business introduced that it would merge with REE Automotive, an Israeli electrical-automobile technology startup. The merged firm will have a pro forma business benefit of $3.1 billion.
REE will make technologies that integrates all push parts into the arch of the wheel, and a flat, modular chassis that can be utilised as a system for autonomous delivery vans, shuttles and robo taxis. The enterprise has claimed its system can be employed for battery or fuel mobile-powered vehicles.
10X in November lifted far more than $200 million in an initial community featuring, revealing at the time that it would focus on getting large-progress know-how and tech-enabled organizations in the U.S. and somewhere else.
REE has signed indications of interest for more than 250,000 platforms, representing 27% of its full cumulative envisioned income of $19.1 billion by 2026, according to the transaction announcement.
Ripe With SPAC Targets
If this REE Automotive SPAC merger information sounds vaguely common, perhaps it is simply because significantly less than two weeks back shares of one more SPAC, Burgundy Technological know-how Acquisition (NASDAQ:BTAQ), had been on the go on speculation that it would shortly expose an Israeli firm as a merger candidate for an investment decision in technology or company computer software. At the time, some investors thought REE made sense as a Burgundy concentrate on.
There is no scarcity of potential Israeli goal acquisitions for 10X, Burgundy or any other of the dozens of tech and EV-concentrated SPACs that have lifted revenue in current IPOs.
Just before Christmas, the shares of blank-examine business ION Acquisition (NYSE:IACA) surged on reports that the business was in talks to get electronic advertising and marketing organization Taboola. Formal announcement of that deal arrived a month later.
And earlier now, Israeli fintech Payoneer explained it entered into a definitive settlement with SPAC FTAC Olympus Acquisition Corp. (NASDAQ:FTOC), and will start off investing at an estimated business worth of $3.3 billion. FTOC inventory was up more than 10% this early morning, in premarket investing.
Everyone who has been observing the EV current market of late will be common with Canoo (NASDAQ:GOEV), the battery-run shipping truck platform that just lately shut its merger with SPAC Hennessey Cash. GOEV inventory now has a $3.7 billion market place capitalization.
REE Automotive in Oct produced a video showcasing 3 prototypes of its upcoming-generation EV platforms: the P1 for final-mile, inner-town shipping programs the P2, created to transportation equally travellers and cargo and, the P4, tailor made built for the North American market shipping sector.
On the day of publication, Robert Lakin did not have (either immediately or indirectly) any positions in the securities talked about in this posting.
InvestorPlace contributor Robert Lakin formerly rising markets editor for Bloomberg News in Tel Aviv. He is a veteran fiscal author and editor, following fintech, agtech and residence tech startups.
More From InvestorPlace
The publish VCVC Inventory: 10X Money Soars on REE Automotive SPAC Merger News appeared initially on InvestorPlace.