Electric Last Mile in Auburn Hills to Launch Urban Delivery Van
Electric Last Mile has partnered with Forum Merger III Corp. reached an agreement to make Electric a publicly traded company. The Urban Delivery Van is shown. // Photo courtesy of Electric Last Mile Solutions Inc.
Electric Last Mile Inc. of Auburn Hills has entered into a definitive business combination agreement with Forum Merger III Corp. closed in Florida, which would result in Electric becoming a publicly traded company.
The transaction is expected to close in the first quarter of 2021. The combined company will be called Electric Last Mile Solutions Inc. It is listed on the Nasdaq Capital Market under the new ticker symbol ELMS.
The transaction reflects a pro forma implied equity value of the combined company of approximately $ 1.4 billion at a price of $ 10 per share and assumes no redemptions from shareholders in the forum.
After the merger, the company expects to launch its Urban Delivery Van in the third quarter of 2021. To date, ELMS has more than 30,000 pre-orders from customers, including leading brands and some of the largest fleet managers and dealers in the country.
“The demand for cost-effective solutions to support the e-commerce ecosystem is overwhelming,” said James Taylor, CEO of Electric. “This industry promises rewards for first movers who can deliver value-based solutions.
“ELMS focuses exclusively on the commercial vehicle market. Our products offer the most cost-effective, reliable and customized solutions for the delivery of goods and services over the last mile. ELMS is jumping the curve with proven technology and a manufacturing advantage, and this merger with Forum further accelerates our go-to-market plan and anticipated leadership. “
The Electric management team combines leadership experience from General Motors Co., Workhorse, Fiat Chrysler Automobiles, BMW, Key Security Systems, and other OEMs and Tier 1 manufacturers. Electric plans to manufacture its Urban Delivery van in Indiana at an electric vehicle manufacturing facility.
“Forum is very excited about the partnership with Electric Last Mile and the launch of an electric vehicle company to transform the last mile delivery and mobility networks,” said David Boris, Co-CEO and CFO of Forum III. “After the business combination is complete, ELMS will deploy a product based on a proven, best-selling platform and a US plant with significant capacity.
“In addition, the seasoned management team has already generated significant pre-orders that represent expected sales of over $ 1 billion. The investment from Forum III and other investors will fully fund ELMS to bring its first products to market and meet the growing demand for delivery vehicles. We look forward to building an industry-leading electric vehicle company with the ELMS team. “
Forum Merger III Corp. is a blank check company formed for the purpose of completing a merger, stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more companies.