Polestar plans to go public on June 24, raising $850 million

Polestar and Gores Guggenheim, a special purpose acquisition company (SPAC), announced on June 21 that the companies expect to complete their business combination on June 23, 2022, subject to approval by Gores Guggenheim shareholders. .

Upon completion of the business combination, Polestar common stock is expected to begin trading on the Nasdaq on June 24, 2022, under the new ticker symbol "PSNY."Polestar and Gores Guggenheim expect the deal to raise at least $850 million.

The initial redemption ratio is expected to be as high as 25%, the companies said.The lower the number, the better the redemption, as it suggests Gores Guggenheim shareholders support the merger, according to people familiar with the matter.Year-to-date, SPACs have averaged 83% redemption rates.Of the 42 reverse takeovers completed in 2022, only three have redemption rates below 50%, according to people familiar with the matter.

Image credit: Polestar

Alec Gores, chairman of Gores Guggenheim, said, "In the current challenging macro environment, the limited redemption is an incredible achievement for us and demonstrates the strength of Polestar and our investors' appreciation for Polestar. High confidence in the potential. We are proud of Polestar's growth momentum over the past few months and we look forward to completing the business combination this week."

In April, Polestar struck a deal with rental car giant Hertz to supply it with up to 65,000 pureelectric vehiclesin Europe and the United States .The five-year deal will generate more than $3 billion in potential revenue for Polestar, according to people familiar with the matter.

Polestar chief executive Thomas Ingenlath called the listing a "company milestone".Polestar's sales are expected to increase to 290,000 units by 2025, up from 29,000 last year, and to break even financially in 2023.

Last September, Polestar first announced plans to merge with Gores Guggenheim to list on the Nasdaq.