Benzinga | Aug 3, 2020 06:39AM EDT

Special Purpose Acquisition Company DiamondPeak Holdings to Acquire Lordstown, An Electric Pickup Truck Company for the Commercial Fleet Market

* Lordstown has entered into a definitive merger agreement with DiamondPeak Holdings Corp. (NASDAQ:DPHC); upon closing, the combined company will remain listed on the NASDAQ under the new ticker symbol "RIDE"

* Lordstown Endurance(tm) will be the first full-size electric pickup truck designed to serve the U.S. commercial fleet market with initial production expected in the second half of 2021

* Approximately $675 million of gross proceeds that are expected from the transaction will be used to fund production of the Endurance and its innovative in-wheel electric hub motor design

* Transaction includes a $500 million fully committed PIPE, which includes $75 million of investments by General Motors in addition to investments from institutional investors, including Fidelity Management & Research Company LLC, Wellington Management Company LLP, Federated Hermes Kaufmann Small Cap Fund, and funds and accounts managed by BlackRock, among others

* Pro forma implied equity value of the combined company is approximately $1.6 billion

* Combined company Board of Directors will include Steve Burns, Founder and CEO of Lordstown, and David Hamamoto, Chairman and CEO of DiamondPeak

* Transaction is expected to close in the fourth quarter of 2020