Photo: Tevva
London electric truck manufacturer ElectraMeccanica and electric lorry start-up Tevva have announced plans to merge by way of a British Columbia statutory plan of arrangement.
The proposed transaction is intended to accelerate their combined ability to capture the growing opportunity in commercial electric trucks. The proposed combined company aims to manufacture their zero-emission vehicles in the UK, and in the US.
Tevva’s existing 110,000-square-foot EV manufacturing facility in Tilbury, United Kingdom, and ElectraMeccanica’s 235,000-square-foot facility in Arizona, are expected to respectively enable the combined company to scale its production to serve the U.K., European, and U.S. markets.
At closing of the proposed transaction, the combined company will operate as Tevva, Inc., and is expected to be located in Delaware.
Susan Docherty, CEO of ElectraMeccanica, said:
“We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market.
“The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value. Tevva is extremely well positioned in the U.K. and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”
Upon the closing of the proposed transaction, ElectraMeccanica shareholders will own 23.5% of the combined company and Tevva shareholders will own 76.5% of the combined company on a fully diluted basis. The combined company expects to have a cash balance of approximately $70 – 80 million.
Steven Sanders, Chairman of the ElectraMeccanica Board of Directors, also said:
“By partnering with Tevva, we are providing our shareholders with a unique opportunity to participate in the accelerated and technology-driven growth prospects of the combined company in ways that also logically extend and leverage ElectraMeccanica’s existing assets and strengths.”
