Illustration: Natalie Peeples/Axios
ZeroNox, a California-based electric powertrain manufacturer, announced a SPAC merger with The Growth for Good Acquisition Corporation at an enterprise value of $306 million.
Why it matters: ZeroNox is testing shaky ground, as the SPAC market for EVs and other companies has shriveled. The company says its leaner approach of retrofits and propulsion systems will win over investors.
Details: ZeroNox's existing shareholders are expected to own about 40% of the pro forma company at close. The merger is slated to close in H2.
What's happening: ZeroNox electrifies vehicle fleets and provides electric powertrains for OEMs.
- Its focus is "off-highway" vehicles such as farm equipment, garbage trucks and forklifts.
- It also has EV distribution and charging infrastructure verticals.
Zoom in: The company has delivered about 800 vehicles over the past two years, generating roughly $20 million in revenue, per an SEC filing.
Of note: ZeroNox's contracted revenue includes $138 million to electrify 1,000 trash trucks for Zoomlion, a Chinese waste management company that operates in five African countries.
Context: Few EV SPACs have performed well.
- Arrival, Canoo, Electric Last Mile, Faraday Future, Fisker, Lightning, Lordstown, Lucid, Nikola, and Polestar have all seen their stock prices tumble as they dealt with financial setbacks.
- If there's one thing that's going for ZeroNox, it's that it builds powertrains as opposed to the entire vehicle.
Meanwhile, the company said it plans to launch a residential energy storage arm later this year.
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