By Xos, the leading commercial EV company, has announced its agreement to acquire ElectraMeccanica Vehicles, marking a significant move that will provide Xos with access to ElectraMeccanica’s cash balance. As a result, Xos stock experienced a surge of more than 18% in midday trading, reaching $8.50. However, it’s worth noting that Xos shares have seen a decline of 74% over the past year.
On the other hand, ElectraMeccanica’s shares fell by 6%, reaching 31 cents. The stock has faced a decline of approximately 69% over the past year.
With this acquisition, Xos, known for manufacturing commercial battery-electric vehicles, is set to benefit from ElectraMeccanica’s cash balance, which is projected to be around $48.5 million at the time of deal closure.
Dakota Semler, the CEO of Xos, expressed his confidence in the potential of this agreement: “We believe leveraging ElectraMeccanica’s assets will strengthen Xos’ leadership position in the robust commercial truck market and allow Xos to scale profitable vehicle sales.”
Upon the completion of the deal, ElectraMeccanica shareholders will hold approximately 21% of the combined company. Additionally, ElectraMeccanica will secure three seats on the board of the combined entity.
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