In June 2020, Hyliion Inc. revealed it would become a publicly traded business through the process of combining with Tortoise Acquisition Corp. (NYSE: SHLL), an unique purpose acquisition business (SPAC). Given that publicly announcing the merger on June 19, shares of Tortoise Acquisition have leapt more than 20% as financiers expressed excitement concerning the transformational product Hyliion has to offer.
Hyliion's SPAC IPO
A typical IPO process can be a challenging and exhausting experience for business. IPOs can take months, if not years, of dealing with underwriters and auditors. Likewise, business need to market their public offerings to potential investors throughout IPO roadshows.
yliion is going public through a slightly various process referred to as a SPAC IPO. SPACs, also referred to as blank-check companies, are publicly traded shell business. By merging with Tortoise Acquisition's SPAC, Hyliion is effectively going public. Going public with SPACs has actually increased in appeal since the process is quicker than a conventional IPO. Tortoise Acquisition was developed for the function of acquiring a business in the energy industry. Vincent Cubbage, Tortoise's CEO, has substantial experience dealing with energy-related acquisitions as an investment lender. In the agreement to obtain Hyliion, the company is being valued at an enterprise value of $1.5 billion. The deal is expected to surround completion of the third quarter of 2020. As soon as the deal is finished, the entity will be named Hyliion Holdings Corp. and be noted on the NYSE with the ticker symbol "HYLN.".
The push for electric power drivetrain.
Hyliion is a leader in electrified powertrain options for trucks that are categorized as Class 8 commercial automobiles. These are trucks that weigh over 33,000 pounds-- for instance, cement trucks and semitrailers. Hyliion manufactures battery-powered powertrains and the innovative software needed to run them.
The business's business design focuses on having the ability to decrease the carbon and greenhouse gas emissions of industrial automobiles. With information analytics and advanced software algorithms, Hyliion can help develop an effective system that has the ability to integrate with existing vehicles, therefore helping consumers reduce their fuel usage and expenditures. Established in 2015, Hyliion has actually currently developed itself as a leader in Class 8 business car electrification with the abilities of attaining a net unfavorable carbon footprint. In truth, the company has component pre-orders as big as 1,000 from developed trucking companies.
In a recent interview, Hyliion CEO Thomas Healy highlighted that the company's objective is to enable its fleet customers to utilize its technology and services to speed up efforts toward lower carbon emissions and significantly lower the cost of ownership. More help By raising cash through its IPO, the company wants to produce more cash to accelerate its item commercialization and production and hire more staff. The move needs to better place Hyliion to contend in the rapidly growing and significantly competitive market for electrical trucks.