More info has come out regarding the relationship between NGA and Amazon. It looks like they have a deal for Lion Electric to produce up to 500 trucks per year through 2030. Check out the article for the details. This is big news.
Article Content:
Canadian electric vehicle producer Lion Electric Co. has landed a second major backer, with Amazon.com Inc. securing the right to purchase a 15.8 per cent stake in the company.
Montreal-based Lion Electric made a name for itself producing all-electric school buses and is already backed by the Desmarais family through their holding company Power Corp., which invested in 2017. In 2019, the EV maker added electric trucks to its arsenal and in the fall of 2020 announced a small deal with Amazon to produce 10 trucks for the retailer as a trial run. The retailing giant was also awarded share purchase warrants to acquire a sizable stake in Lion, although that was little known at the time. Lion had disclosed an ownership deal with an unnamed company, but it seemed separate from the Amazon contract. The connection was recently disclosed in a securities filing issued as part of Lion’s move to list its shares on the New York Stock Exchange.
Amazon’s contract with Lion is structured in a similar format as its significant deal with Cargojet Inc., which was signed in August, 2019, and gave the retailer the right to buy 14.99 per cent of the Canadian cargo company. As part of the Lion deal, the EV maker must reserve enough manufacturing capacity to deliver up to 500 trucks a year from 2021 to 2025 to Amazon, and the greater of 500 all-electric trucks a year, or 10 per cent of Lion’s manufacturing capacity from 2026 to 2030.
Amazon’s warrants to purchase up to 15.8 per cent of Lion can be exercised at US$5.66 per share, and they expire after eight years. To use all of the warrants, Amazon must spend at least US$1.1-billion on Lion products or services. Lion has yet to finalize its NYSE listing, but it is going public through a reverse takeover by Northern Genesis Acquisition Corp., which already trades. Northern Genesis’s shares closed at US$23.61 on Thursday. Lion’s relationship with Amazon dates back to 2018 when company founder Marc Bédard gave a speech
... keep reading on reddit ➡Has anyone done serious DD on RMO? I have researched the last few days and it seems to be a good long term play 1-5 years, probably longer. But I haven’t found exactly why their technology is the best in the market. Thanks again! Lmk what you guys think.
"KANSAS CITY, Mo. & SAINT-JÉRÔME, Québec--(BUSINESS WIRE)--The Lion Electric Company, a leading designer, manufacturer and distributor of all-electric medium and heavy-duty urban vehicles, announced today it intends to combine with Northern Genesis Acquisition Corp. (NYSE: NGA), a publicly traded special purpose acquisition company focused on a commitment to sustainability and strong alignment with environmental, social and governance principles. Upon closing of the transaction, a wholly-owned subsidiary of Lion will merge with and into Northern Genesis, and Lion is expected to be listed on the New York Stock Exchange (NYSE) under the new ticker symbol “LEV”.
The transaction is expected to bolster Lion’s market leading position in all-electric medium and heavy-duty urban vehicles by supporting the planned construction of a state-of-the-art vehicle manufacturing facility in the U.S., the continued development of advanced battery systems, the planned construction of a highly automated battery system assembly factory and other general corporate purposes. "
8-K with Business Combination Agreement and Form of Subscription Agreement
it jacks up the prices if you use electricity during the "peak times". Electricity demand is only going to increase every year as more people adopt EVs and you bet that your electric bill is not going to cheap. So do we need an alternative fuel (like hydrogen?) to power our vehicles, and ensure there's some competition in who provides that fuel?
