Nanjing, China-based Scage is developing a line of hybrid heavy trucks for use in the mining and road freight sectors.
Finnovate has about $48.5 million in its current trust after seeing 73.2% of shares redeemed at a May extension vote. It now has until May 8, 2024 to complete a transaction under its new deadline.
The parties have not yet filed their merger documents or an investor presentation, but Finnovate’s profile page will be updated once more information is made available.
Quick Takes: SPAC deals have lately been looking to the skies through new eVTOL designers and innovators in private flight economics, but not long ago trucks were all the rage.
Hydrogen truck technology company Nikola (NASDAQ:NKLA) became one of the signature deals at the beginning of the current SPAC cycle (eventually in infamous fashion) and its March 2020 announcement was followed by Hyliion (NYSE:HYLN), Arrival (NASDAQ:ARVL), Lion Electric (NYSE:LEV), Lightning eMotors (NYSE:LEV) and Electric Last Mile before the end of the year.
All of these companies were developing various approaches to making heavy trucks and buses more sustainable by replacing internal combustion engines with hydrogen, electric or fuel cell motors in some form or fashion. This wave didn’t crest in 2020 either, these announcements were swiftly followed by a 2021 crop of deals including Proterra (NASDAQ:PTRA), Hyzon (NASDAQ:HYZN), Xos (NASDAQ:XOS) and truck-automation firms Embark (NASDAQ:EMBK) and Aurora (NASDAQ:AUR).
But, just as suddenly as the trucking tsunami hit land, it seemingly dissipated. Aurora’s deal – announced in July 2021 and closed that November – wound up being the last of its kind until now.
There was certainly some sense around this time that SPACs had perhaps over-picked this particular tree, but these were also nearly all North American companies. And, although 2022 brought some Asia-based EV deals, all of those targets are focused on consumer market segments.
As such, Finnovate may have found a fresher target than it would appear at first glance. A glance is so far about all the SPAC has given us, however.
Finnovate notes that Scage has completed the design, production and testing of at least some of its five zero-emissions truck designs. But, although it describes itself as being at the “batch delivery stage” it does not appear to be at the point of major production. Scage Founder and Chairman Chao Gao noted in the announcement press release that the company’s next step would be to build its production plants.
But beyond citing the deal’s ability to “make more people know about Scage”, the materials released thus far do not point to how these truck designs will make it to the road.
Scage’s models use hybrid engines, which have the potential to provide greater range than their pure EV peers, while extending its battery life with self-charging. For instance, in addition to charging the battery while the gas motor is running Scage’s Dragon King dump truck model would capture kinetic energy from its breaks as the 95-ton vehicle is descending down slopes.
The company has also worked up three semi-truck models – the Galaxy II, Galaxy III and Andromeda – as well as a concept for a driverless 120-ton dump truck for mining applications called the Sky Turtle. It claims it has designed Sky Turtle models to operate autonomously in formations. But, past forays into driverless trucking give reason to be skeptical of this technology’s readiness.
For one, all of the photos of the vehicles on Scage’s website appear to be illustrations photoshopping pictures of them into different environments. The company has not yet given evidence of the designs in use.
But, the deal nonetheless marks an interesting return to a sector that once headlined the SPAC market. It is also not a repeat play for the team.
In May, Sunorange Limited bought out the sponsor economics from Finnovate’s original sponsor, replacing its team with Chairman and CEO Calvin Kung and CFO Tomy Chiu Wang Wong. The SPAC has not filed updated bios for these new officers, but they do not appear to have had a role in SPACs in the past.
- Scage Advisors:
- Wilson Sonsini Goodrich & Rosati, Jingtian & Gongcheng and Ogier are serving as legal advisors
- Finnovate Advisors:
- Ellenoff Grossman & Schole LLP is serving as legal advisor
Murphy Canyon Acquisition Corp. (NASDAQ:MURF) announced this afternoon that its stockholders voted in favor of the proposed business combination with Conduit Pharmaceuticals Limited (“Conduit”). Details on the vote, along with redemption numbers, have not been filed yet, but the Company expects the closing to occur as soon as practicable, subject to the satisfaction or waiver...
Latest SPAC Liquidations: Juniper II Corp. Juniper II Corp. (JUN) to Liquidate on October 10, 2023 Juniper II Corp. (NYSE: JUN), today announced that its board of directors has determined to redeem all of its outstanding shares of Class A common stock with such redemption anticipated to be effective as of October 10, 2023. The...
TradeUP (NASDAQ:UPTD) announced in an 8-K this afternoon that has entered into additional subscription agreements in connection with its combination with Estrella Biopharma. Under these subscription agreements, Plentiful Limited and Lianhe World Limited, collectively known as the “Investors”, agreed to each buy $5,000,000 worth of UPTD’s common stock, priced at $10.00 per share. However, if,...
Vahanna Tech Edge Acquisition I Corp. (NASDAQ:VHNA) has closed its combination with insuretech firm Roadzen and its shares and warrants will begin trading on the Nasdaq tomorrow, September 21, under the symbols “RDZN” and “RDZNW”. The SPAC secured shareholder approval for the deal about a month ago in an August 25 vote and it has...
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. Abu Dhabi royal-backed firms to merge in region’s first SPAC deal ADC Acquisition Corporation (ADC.AD), a blank-cheque company backed by a prominent Abu Dhabi royal, has agreed to acquire state investment fund ADQ’s United Printing & Publishing,...