Freyr is planning to go public via a merger with special purpose acquisition company (SPAC) Alussa Energy Acquisition (NYSE:ALUS) and shares of ALUS stock are on the rise Friday.
Here’s everything potential ALUS stock investors need to know about Freyr ahead of its SPAC merger.
Freyr is a clean battery company with plans to expand its business with higher production. That includes reaching 43 GWh of battery cell production by 2025. Doing so would make it one of the largest battery cell suppliers in Europe. It plans to locate its battery production facilities in Northern Norway to take advantage of its clean energy sources. The company says that it will create batteries for use in electric vehicles (EVs), as well as for energy storage and marine applications. Today’s news notes that the combined company from the Freyr and Alussa Energy SPAC merger would have a value of $1.4 billion. The SPAC merger will provide Freyr with $850 million in net proceeds. $600 million of this comes from a private investment in public equity (PIPE). Once the merger is complete, current Freyr shareholders will own 30% of the combined company. When the deal closes, the new company will operate under the name Freyr Battery. This will also see shares of ALUS stock change to the FREY stock ticker. The merger is expected to close in the second quarter of 2021 ALUS stock is seeing heavy trading on the news with some 8 million shares having changed hands as of this writing. The stock’s daily average trading volume is only about 112,000 shares.
ALUS stock was up 16.8% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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