Polestar and Gores Guggenheim, the special purpose acquisition company (SPAC) planning to merge with EV maker, said Tuesday that they expect the deal to raise at least $850m.
The companies noted in their release Tuesday that the preliminary redemption elections are expected to reach a maximum of 25 percent. The lower the number the better for redemptions, as it shows Gores Guggenheim’s shareholders back the merger, according to a source close to the deal.
The momentum includes Polestar, which is a subsidiary of Volvo Cars, closing a deal in April with rental giant Hertz to supply up to 65,000 battery-powered vehicles in Europe and the U.S. The five-year pact should represent more than $3 billion of potential revenue for the EV startup, a source told Automotive News Europe sister publication Automotive News.
Read more: Europe Autonews
