What happened
Shares of Trine Acquisition Corp (NYSE: TRNE), a special purpose acquisition company, or SPAC, surged in early trading Wednesday and are now up 13.2% at 1 p.m. EDT after the company announced that it will purchase and take public additive manufacturer Desktop Metal in a reverse merger IPO.
So what
Trine explained that Desktop Metal "is a leader in mass production and turnkey additive manufacturing solutions, offering the fastest metal 3D printing technology in the market, up to 100x the speed of legacy technologies."
Image source: Getty Images.
Ford (NYSE: F) seems to agree. In 2018, the Michigan automaker invested $65 million of its own money in Desktop Metal, joining a list of prior investors in the company that included everyone from BMW to GE and Google -- and additive-manufacturing pioneer Stratasys, as well. All of these strategic investors, by the way, will be retaining their stakes in the company (which will add up to 74% ownership) as Desktop Metal joins the public markets under ticker symbol DM on the New York Stock Exchange.
As for Trine, it will be investing $300 million of its own cash in Desktop Metal, and organizing a further $275 million in investments via a private investment in public equity, or "PIPE" sale of shares at $10 apiece.
Now what
When all is said and done, Trine says that between its and others' investments, Desktop Metal will carry "an estimated post-transaction equity value of up to $2.5 billion" once the reverse merger takes effect and the company begins trading on the NYSE in Q4 2020.
10 stocks we like better than Trine Acquisition
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Trine Acquisition wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
