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#32 | Stocks | Tritium goes public via SPAC

Tritium, the only 'pure-play' EV fast-charger hardware and software developer that we've talked about more than once, is set to go public via SPAC merger at a $1.2B valuation.

Tritium, the only 'pure-play' EV fast-charger hardware and software developer that we've talked about more than once, is set to go public via SPAC merger at a $1.2B valuation.

The SPAC merger will happen with Decarbonization Plus Acquisition Corp. II ($DCRN) and Tritium will be listed under the suitable ticker of DCFC, probably meant as in Direct Current Fast Charging? (link)

The SPAC doesn't include a traditional PIPE (the fundraising round to inject more capital), because the DCRN is a more than $400M SPAC. Tritium CEO Jane Hunter told TechCrunch:

We didn’t need a PIPE because DCRN is a more than $400 million SPAC and our shareholder group agreed to a minimum cash closing of just $200 million, which significantly reduces redemption risk. Also, our revenue has grown at a compound annual growth rate (CAGR) of 56% since 2016 as we expand our presence in major markets where we have a significant market share, such as the U.S. and Europe.

The transaction is assumed to provide gross proceeds of up to approximately $403M to grow Tritium’s operations to three global, full-scale manufacturing facilities, with investment in a new production facility in Europe, expansion of its Los Angeles site, and further development of the Brisbane facilities.

The $DCRN stock doesn't seem to have moved more than about 2% for the news so far. If this would have been about 4 months ago when the SPAC mobility market was on fire though...

DISCLAIMER: As always, nothing in this newsletter should be taken as financial advice.

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