UK startup Britishvolt exploring potential SPAC merger

FILE Picture: A auto is plugged in at a charging level for electric motor vehicles in London, Britain, March 6, 2018. REUTERS/Simon Dawson/File Photograph

LONDON (Reuters) – Electrical car or truck battery startup Britishvolt is looking at heading public, perhaps by way of a merger with a specific intent acquisition organization (SPAC), it said on Thursday, as it proceeds fundraising for a 2.6 billion pound ($3.59 billion) plant in England.

The startup has appointed Guggenheim Funds LLC and Barclays Plc to explore merger alternatives, like a SPAC.

A wave of electrical motor vehicle-connected startups around the planet have gone public more than the previous 12 months, generally involving a reverse merger with a SPAC. The prime performer among them very last yr was battery startup QuantumScape Corp.

SPACs are detailed shell companies that raise funds to receive a private enterprise with the goal of taking it public, permitting these kinds of targets to sidestep a standard first general public supplying.

A U.S. Securities and Exchange Fee official warned on Wednesday of the challenges related with these blank-cheque businesses.

Britishvolt explained it has also appointed Barclays to suggest on its up coming two rounds of fundraising and aims to raise up to 350 million pounds by the end of this summer.

Britishvolt, which so much claims it has lifted about 10 million pounds, reported in December it will build a plant in the port of Blyth, northern England, in 3 stages that will use up to 3,000 individuals and deliver at least 300,000 lithium-ion batteries a 12 months by 2027.

The startup has utilized for backing from a £1 billion British federal government fund set up to support the mass manufacturing of batteries and assistance the vehicle industry change to earning electric motor vehicles.

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Reporting by Nick Carey Enhancing by Susan Fenton