Northern Genesis Acquisition Corp. (NGA) stock roared on Friday, March 19, 2021. It further gained 10.54% in after-hours thanks to merger speculations.
What’s the importance of the expected merger
Investors are hopeful that NGA which is a special purpose acquisition company, is conducting a high-profile merger with Lion Electric.Lion Electric is the only company to electrify buses and trucks andstand out from its industry peers.
Lion Electric has signed a deal with Amazon Logistics to purchase 2,500 Lion 6 and Lion 8 electric trucks, according to a filing with the U.S. Securities and Exchange Commission.
It is also expected that NGA stock will convert to LEV stock at some point, so be ready for that. NGA went up to $35.25 after its IPO offer but fall to $21.00 per share in early March 2021.
Lion Electric would have to manufacture up to 500 trucks per year for Amazon Logistics and it needs to reserve a portion of its manufacturing capacity from the years 2021 to 2025.
Investing in Northern Genesis Acquisition shares is a long-term deal with huge benefits because of the Amazon logistics deal. That might be the reason behind NGA stock went up on Friday.
Recent NGA and LION electric news
On March 15, 2021, NGA announced that its “proposed business partner” The Lion Electric Company will construction of a battery manufacturing plant and innovation centre in Quebec. The plant will produce battery packs and modules made from Lithium-ion cells and it is expected to commence its production in 2023.
Lion Electric Financial outlook
The lion electric expecting $204 million of revenue by selling 650 units in 2021 and $1.67 billion in revenue for 2023 by selling 7,580 units.
Conclusion:If the merger goes as planned, investors can make good long term profit with “LEV” stock. Electric vehicle demand will be skyrocketed in the near future and investors already investing more in companies related to EV products.