Electric personal watercraft and snowmobile manufacturer Taiga Motors plans to go public via a merger with a blank-check company sponsored by Canaccord Genuity Group Inc., taking advantage of investor demand for companies that offer environmental credentials.
Montreal-based Taiga will have an implied market capitalization of about C$537 million ($422 million) after the combination with the Canaccord Genuity Growth II Corp. special purpose acquisition corporation, the companies said Wednesday. That valuation includes a C$100 million private placement with investors including John Risley’s Northern Private Capital.
Powersports Business previously reported that Taiga has revealed the MSRP for its Orca electric personal watercraft that is scheduled to land in U.S. dealerships in the summer of 2021.
Taiga makes electric recreational vehicles including its Orca and Ekko Mountain snowmobiles that are meant to create a smaller environmental impact than rival products that run on fossil fuels. The company last year reached a deal with ABB Ltd. that will allow Taiga to offer customers the Swiss company’s Terra wall box charging stations.
The deal, which is expected to be completed in April, will give Taiga about C$185 million in net cash proceeds to pursue its growth strategy. That will include speeding up its existing production capabilities to fulfill pre-orders for vehicles, and moving ahead with plans to expand output.
The company currently has a 50,000 square-foot facility in Montreal that it expects to boost production to 2,000 vehicles a year by the second half of 2021. It also plans to build a 340,000 square-foot factory that will be able to build 60,000 vehicles and 20,000 powertrains a year.
The merger can arguably be seen as another step toward stable footing in the industry for the young company.
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