The EV manufacturer Polestar filed on Monday the Amendment Number 8 with the SEC towards its merger with Gores Guggenheim. Recently, the company said the merger process is expected to be closed in the first half of the year.
“Polestar intends to list on the Nasdaq in a proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in the first half of 2022,” Polestar recently said.
The 8th Amendment follows the one filed last Thursday (May 20) bringing some small corrections and some updated informations including the production guidance for 2022 after the Chinese Lockdowns
Impact of the Lockdowns in China
On the 8th Amendment, Polestar says the company’s “management also believes the impact of the prolonged COVID-19 government mandated quarantines and lockdowns in China have negatively impacted Polestar, and are expected to continue to negatively impact Polestar and its strategic and contract manufacturing partner, Volvo Cars’, ability to manufacture and deliver Polestar vehicles in the volumes previously anticipated by Polestar. Accordingly, Polestar currently estimates that global deliveries in 2022 will be approximately 50,000 vehicles as compared to its prior projections of 65,000 vehicles.”
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Global Deliveries in April
During April 2022, Polestar estimates that it delivered approximately 4,100 vehicles, of which approximately 120 vehicles are subject to buy-back agreements and approximately 100 vehicles were internal vehicle deliveries, compared to an estimated 1,600 vehicles delivered during April 2021, when no vehicles included buy-back agreements and approximately 100 vehicles were internal vehicle deliveries.
Russia x Ukraine Conflict
The conflict between Russia and Ukraine has, and is likely to continue to, generate uncertain geopolitical conditions, including sanctions that could adversely affect Polestar’s business prospects and results of operations, Polestar says.
Russia and Ukraine are not Polestar markets, and there are no plans to launch in either market in the near future. Nevertheless, the uncertain geopolitical conditions, sanctions, and other potential impacts on the global economic environment resulting from Russia’s invasion of Ukraine may weaken demand for Polestar’s vehicles, which could make it difficult for Polestar to forecast its financial results and manage its inventory levels. The uncertainty surrounding these conditions and the current, and potentially expanded, scope of international sanctions against Russia may cause unanticipated changes in customers’ buying patterns, adversely impact operations of our suppliers, or interrupt Polestar’s ability to source products from this region. Sanctions have also created supply constraints and driven inflation that has impacted, and may continue to impact, Polestar’s operations and could create or exacerbate risks facing Polestar’s business.
Polestar vehicles are manufactured at facilities owned and operated by Volvo Cars. While we understand that Volvo Cars does not have any “Tier 1” suppliers from Russia, car production is a complex process, with thousands of components sourced from all over the world. There can be no assurance, therefore, that there will not be some components sourced from suppliers subject to sanctions against Russia nor that the resulting disruption to the supply chain will not have an adverse impact on our business and results of operations.
The deal with Gores Guggenheim will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and $250 million from intitutional investors through a private investment in public equity (PIPE).
After announcing the launching in Portugal on Friday, Polestar arrives now Spain with the first test drives of the Polestar 2 model starting on Tuesday, May 24, in Madrid and on June 1 in Barcelona. The model starts at €46,190 and the first units are expected to arrive the country in October.
Since the beginning of the year, the Swedish electric vehicle maker expanded to 4 new markets increasing its global presence to 23 markets, seven away from its target of 30 markets in aggregate by the end of 2023.