EV Play Tritium Finds A SPAC After Last Month's Deal Freeze

Tritium, a maker of charging stations for electric vehicles, said it planned to go public via a SPAC, with hopes of tapping rising demand for electric vehicles in the decades ahead. EV stocks were up on Wednesday.


The Australia-based company, founded in 2001, said it had a $1.2 billion valuation in connection with the transaction. Tritium said it expects the deal to give it gross proceeds of as much as roughly $403 million to fund growth.

The SPAC — or special-purpose acquisition company — that will take Tritium public is Decarbonization Plus Acquisition Corporation II (DCRN). SPACs, also known as blank-check companies, are publicly-traded companies that exist to acquire another company and, in turn, take that company public.

Once the deal closes, the new company will take the Tritium name. It is expected to trade on the NASDAQ under the ticker DCFC.

“The accelerated electrification of the transport sector globally is now underway and has extraordinary implications beyond the benefits to individual consumers,” Tritium CEO Jane Hunter said in a statement.

“Our industry is essential to achieving global emission reduction targets both through increased adoption of electric vehicles and the deployment of EVs for mass energy storage technology,” she continued.

Tritium makes direct-current fast chargers for electric vehicles. The company said it serves customers in 41 nations.

Tritium said the deal would help it invest in a new production facility in Europe, expand its site in Los Angeles, and build out its facilities in Brisbane, Australia.

Hunter will remain CEO of Tritium after the deal. Robert Tichio, chairman of Decarbonization Plus, will join the combined company’s board.

EV Charging Stocks Rise

Decarbonization Plus rose 1.35% in the stock market today.

Climate Change Crisis Real Impact I Acquisition Corporation (CLII), another SPAC, climbed 1.2%. EVgo, which runs an EV charging network in the U.S., announced a deal to go public with CLII.

ChargePoint Holdings (CHPT), which runs a charging network for electric vehicles, popped 8.9%. ChargePoint came public via a SPAC deal in March.

Blink Charging (BLNK), another charging-station manufacturer, jumped 9.2%.

EV Makers Rise

Among other EV stocks, Tesla (TSLA) added 2.4%. Nio (NIO) gained 4.7%.

Ford (F), which said Wednesday morning it will spend more on developing electric vehicles, rallied 8.5% to 13.90. Ford stock cleared a 13.72 buy point.

General Motors (GM) added 2.3% to 58.08 on Wednesday. GM stock is in a consolidation with a 63.54 entry.

Tritium’s deal comes after SPAC listings largely froze in April, following a boom earlier this year and through last year. The slowdown followed guidance from the SEC, issued last month, saying that SPAC warrants “should be classified as a liability measured at fair value, with changes in fair value each period reported in earnings.”

SPACs would need to readjust financials if that guidance were to become law, CNBC said at the time.

SPACs last year exploded in popularity, with many seeing the blank-check companies as an easier route to go public. There were 248 SPAC IPOs last year, according to SPAC Data. So far this year, there have been 329. But in April, there were only 10, CNBC said.

In a statement from the SEC last month, John Coates, acting director of the division of corporation finance, said concerns “include risks from fees, conflicts, and sponsor compensation, from celebrity sponsorship and the potential for retail participation drawn by baseless hype, and the sheer amount of capital pouring into the SPACs.”

“The staff at the Securities and Exchange Commission are continuing to look carefully at filings and disclosures by SPACs and their private targets,” he continued.


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