Xos to acquire ElectraMeccanica in all-stock transaction

Xos (XOS) and ElectraMeccanica (SOLO) announced they have entered into a definitive arrangement agreement, pursuant to which Xos will acquire all of the issued and outstanding common shares of ElectraMeccanica in an all-stock transaction. The members of the boards of directors of both companies unanimously approved the proposed transaction. Following the close of the transaction, ElectraMeccanica’s shareholders will own approximately 21% of Xos, subject to certain adjustments as set forth in the definitive arrangement agreement. The transaction is intended to be completed, subject to the definitive arrangement agreement, by way of a court-approved plan of arrangement. The deal is expected to close in the first half of 2024. The management team of Xos will continue to manage the business of the combined company following the completion of the transaction. “The proposed transaction represents a unique opportunity for Xos to meet the growing demand for zero-emission medium-duty electric trucks by providing Xos with access to ElectraMeccanica’s cash balance which is expected to be approximately $48.5 million at the time of the closing of the transaction,” the companies said in a statement.