It is being touted as a merger of equals but looks very much like a reverse takeover—which, under the circumstances would seem fitting.
Tevva, the UK electric truck maker, is throwing in its lot with ElectraMeccanica (NASDAQ:SOLO), the emerging US EV group.
Nasdaq-listed shares in the latter rose 11% in the news.
An RTO will enable the British group to bypass the traditional IPO process. Tevva shareholders will be in the driving seat with 76.5% of the combined entity, with ElectraMeccanica (NASDAQ:SOLO) shareholders retaining the remainder.
Operating under the Tevva Inc banner, the enlarged company is expected to trade on the Nasdaq with the ticker "TVVA".
The aim is to capitalize on the booming electric commercial vehicle sector, which is projected to reach $67 billion by 2030.
Of more significance in the near term, the combined company anticipates a cash balance between $70-$80 million and debt nearing $26 million.
David Roberts, a Tevva director and chairman-elect of the merged business, said: "Throughout the process, we have been impressed with ElectraMeccanica's management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”