ElectraMeccanica, a firm that designs and assembles electric vehicles; and Tevva, manufacturer of medium and heavy electric commercial vehicles, have announced that have signed a definitive merger agreement.
The present members of the Boards of Directors of both companies have unanimously approved the proposed transaction. The proposed transaction intends to accelerate its combined capacity to capture the growing opportunity of commercial electric trucks.
Electric car makers ElectraMeccanica and Tevva will merge to meet growing demand
Tevva recently started deliveries of its 7,5t battery electric truck to commercial fleet customers focused on urban delivery. They stand behind their current product with a system of electric batteries for commercial use and its future product portfolio is being developed to include a proprietary hydrogen range-extension technology. Its electric vehicle manufacturing facility in Tilbury will be complemented by ElectraMeccanica's facility in Mesa. It is expected that they will allow production to be expanded to supply the markets of the United Kingdom, Europe and the United States.
Following the completion of an exhaustive process, the Strategic Committee of the ElectraMeccanica Board of Directors made a unanimous and formal recommendation to the ElectraMeccanica Board of Directors to pursue a combination with Tevva to proceed with the proposed transaction. Upon closing, ElectraMeccanica shareholders will own 23,5% of the combined company and Tevva shareholders will own 76,5% of the combined company on a fully diluted basis. The resulting combined company expects to have a cash balance of approximately $70 – $80 million, with a debt of approximately 26 million dollars.
Upon closing of the proposed transaction, the combined company will do business as Tevva, Inc. and is expected to be domiciled in Delaware, and its shares will be listed on the Nasdaq Capital Market under the symbol TVVA. It would benefit from accelerating Tevva's entry into the US market, supported by ElectraMeccanica's complementary platform, team and assets. The transaction is also expected to generate approximately 5 million dollars in annual cost savings by the end of 2024.
