The Latest SPAC News and Rumors: November 7, 2022

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web. 

Latest SPAC News: Ouster and Velodyne agree to merger, DWAC gains as investors leap at presidential bid, and Polestar gets $1.6B boost from Volvo

Ouster and Velodyne agree to merger, signaling consolidation in lidar industry

Ouster (NYSE:OUST) and Velodyne (NASDAQ:VLDR), two lidar companies, have agreed to a merger in an all-stock transaction, the companies said Monday. Both Ouster and Velodyne will maintain a 50% stake in the new company, according to the agreement that was signed on November 4.

The merger comes as many in the industry, including autonomous vehicle technology company Cruise’s CEO Kyle Vogt, have been expecting another round of consolidation in the lidar space.

That’s in part because there are too many lidar companies for how many OEMs are implementing the sensor for autonomous driving applications. It’s also because many of these companies, including Ouster and Velodyne, went public via special purpose acquisition at potentially inflated valuations that were based on projected revenue, not actual revenue

Trump-Tied SPAC Gains as Investors Leap at Presidential Bid

Investors snapped up shares of Digital World Acquisition Corp. (NASDAQ:DWAC), the blank-check firm set to merge with Donald Trump’s social media company, after the former president hinted at plans to make another bid for the White House.

The special-purpose acquisition company rallied as much as 31% to the highest since September in heavy trading on Monday. Warrants tied to the SPAC surged 53%, while Phunware Inc. (NASDAQ:PHUN), a software company that worked on Trump’s re-election campaign, jumped 19%.

Polestar gets a $1.6 billion boost from Volvo, another major stakeholder

Polestar (NASDAQ:PSNY) said Thursday it had secured $1.6 billion in funding from its two major shareholders to help it achieve its growth plans in volatile markets.

Volvo, which co-founded the brand with China’s Geely in 2017, said it would provide an $800 million loan to the company. The other major shareholder, PSD Investment, will provide the same amount through “direct and indirect financial and liquidity support,” Polestar said.

Volvo, which owns just over 48% of Polestar, said the loan included options for Volvo to convert some of its loans into equity in a possible future capital increase by Polestar.

In June, Polestar was listed on Nasdaq through a merger with a SPAC.