The Daily Dish (12/21/20)

Welcome the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.

We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).

Here’s the first assist 👇

eCommerce FinTech Katapult To Go Public By Merging With SPAC

• Katapult Holding, Inc. and special purpose acquisition company (SPAC) FinServ Acquisition Corp. $FSRV said on Friday (Dec. 18) that they have entered into a definitive merger deal. The arrangement will create a combined firm that will run as Katapult and is intended to trade on the Nasdaq with the “KPLT” ticker symbol upon closing, according to an announcement.

• Katapult offers eCommerce point of sale (POS) choices for U.S. nonprime shoppers. The company’s digital technology infrastructure offers a flexible lease purchase option to consumers to let them receive key durable goods from its network of eCommerce merchants.

• The merger is also good news for Curo Group Holdings (NYSE:CURO), which owns a 40% stake in Katapult.

• FinServ also announced that Tiger Global is leading a $150 million private placement in the company at this valuation, which is encouraging. The ending capitalization results in existing shareholders still owning 50% of the company.

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XL Fleet EV stock ‘could be a steal’ after SPAC merger, Jeem CRAMER says

• Always a day late and a dollar short, the CNBC host says – “With Pivotal Investment trading at $15 going into the XL Fleet merger, I think the stock could be a steal,” “But if it starts flying next week, I’m begging that maybe you don’t chase it too much past $20,” the “Mad Money” host said. (It was above 16 before the show was over)

• XL Fleet, a hybrid powertrain producer, is expected to come public next week after blank-check company Pivotal Investments $PIC🍆 acquires the electric vehicle supplier.

• XL Fleet plans a fully electric system by 2022. It’s coming public in a year where a flood of companies are coming public via SPAC deals, especially electric vehicle producers and related companies. The company is projected to bring in $21 million of revenue this year, which it expects to grow to $647 million by 2023.

• “I’ve gotta tell you, if XL Fleet can get even close to hitting its forecasts for 2022 or 2023, and we get some clarity on that relationship with Ford and the F-150, this stock is cheap, darned cheap,” Cramer said. “XL Fleet would be trading at just 3.3 times its 2023 forecast.”

Smart-ish transportation SPAC VectoIQ Acquisition II files for a $300 million IPO – the team behind Nikola

• Here we go again

• The company is led by CEO and Director Stephen Girsky, founder and Managing Partner of VectoIQ and former Vice Chairman of General Motors; CFO Steve Shindler, a Director and former CEO of Latin American mobile telecom provider NII Holdings (Nasdaq: NIHD); and COO Mary Chan, a Managing Partner at VectoIQ and former President of Global Connected Consumer at General Motors.

• The group’s previous SPAC, VectoIQ Acquisition, went public in May 2018 and completed its acquisition of Nikola (NKLA; +71% from $10 offer price) in June 2020.

• We all know what happened next…

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There’s No I In Trade

My goal is to create a community where people can educate themselves through the world of investing. I can’t do that alone, we need to build this community together. So tell me what you’re loving, tell me what you want to see more of tomorrow.

Disclaimer: This is not financial advice and should not be interpreted as such. I am not a financial advisor. I may currently own or have owned many of the SPACs mentioned above – but that does not mean I am invested now. My investing method is highly risky swing trading which means I am constantly in and out of positions. Please do your own research or hit up the #SPACsquad on Twitter to learn more about SPACs.