The Daily Dish (1/5/21)
Welcome to 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 👇
Northern Genesis SPAC Rallies On Lion Electric-Amazon Deal Confirmation
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A filing submitted to the U.S. Securities and Exchange Commission (SEC) caused some eyebrows to raise Monday morning. Lion Electric $NGA had announced that Bezos’s Behemoth Amazon has taken a position in the Canadian Electric Vehicle maker.
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Chris Katje writes, The filing calls for the purchase of up to 2,500 Lion 6 and Lion 8 electric trucks from Lion Electric. Amazon Logistics is listed as the specified customer after being unnamed in previous Northern Genesis filings.
Under the terms of the deal, Lion Electric is required to reserve a portion of its manufacturing capacity for up to 500 trucks per year from 2021 to 2025. The deal calls for Lion Electric to provide the greater of 500 trucks per year (or 10% of manufacturing capacity) from 2026 to 2030.
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The SEC filing includes an option for Amazon to purchase common shares of Lion Electric at $5.66 and warrants to purchase shares at $23.36. The full vesting of the warrants requires spending by Amazon of at least $1.1 billion annually. Amazon could own 20% of Lion Electric in the future with its ownership options.
Mining Giant Robert Friedland files $200M SPAC for probable new EV SPAC
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The special purpose acquisition company Ivanhoe Capital Acquisition, $IVAN led by billionaire mining investor Robert Friedland, is raising $200 million to invest in industries key to the global energy transition.
The SPAC plans to target companies in industries related to the “paradigm shift” away from fossil fuels, it said in a U.S. regulatory filing Wednesday. Those may range from miners to end users involved in electrification products and services, according to the filing. Friedland is a founder of Vancouver-based Ivanhoe Mines Ltd., which explores and develops mines in Africa. He is also co-chair of Clean TeQ Holdings Ltd., the developer of the Sunrise nickel-cobalt-scandium project in Australia.
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“Over the past decade, the growing impact of climate change has begun to create significant urgency to manage our global carbon emissions,” Ivanhoe Capital said in the filing. Rules to limit carbon emissions, “together with the heightened focus on environmental and social governance by the private sector, has precipitated a paradigmatic shift in the global economy towards electrification.”
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Australian Mines have recently become a major nickel-cobalt producer, a major component in Electric Vehicle batteries. Most automakers utilize Nickel-based batteries for their balance of energy and power density; for example BMW, Hyundai and Renault use variants of the Lithium Nickel Manganese Cobalt Oxide (NMC) chemistry, while Tesla uses a Lithium Nickel Cobalt Aluminium Oxide (NCA) chemistry. China also now favors NMC chemistries, having phased out Lithium-Iron-Phosphate (LFP) chemistries which is its subsidy program.
Peter Thiel’s second SPAC Bridgetown 2 Holdings files for a $200 million IPO
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Thiel’s Bridgetown 1 $BTWN has been said to be in talks with Tokopedia, the Indonesian eCommerce giant. Bloomberg recent reported that Tokopedia to be holding off on its SPAC merger until after it merges with Indonesia’s second largest startup ride-hailing and payments giant Gojek. This would increase their enterprise value to around $18 Billion (currently at $10 Billion).
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Bored of waiting for the transaction to complete, Peter picked a pipe to pack his portfolio in his second SPAC Bridgetown 2 $BTNB. This second blank check company formed by Pacific Century and Thiel Capital is also targeting new economy sectors in Southeast Asia.
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The company is led by CEO, CFO, and Director Daniel Wong, who serves as SVP of Pacific Century Group. Directors include former Y Combinator President and current OpenAI CEO Sam Altman, RRE Ventures Partner Jay Hass, and LINE Corp CFO In Joon Hwang. The SPAC plans on targeting a company in Southeast Asia with operations or prospective operations in the technology, financial services, or media sectors. A possible SPAC in the AI industry would excite investors just as much as recent booms in the EV and eCommerce SPAC sectors.
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