Nov 14 (Reuters) – Solar battery storage company Electriq Power Holdings Inc said on Monday it would go public through a merger with check-listing firm TLG Acquisition One Corp ( TLGA.N ), in a deal valuing the combined company at $495 million.
The deal, which is expected to close in the first half of 2023, will provide Electriq with up to $125 million in capital through a mix of debt and equity.
Electriq also said it is in advanced discussions for up to $60 million in capital from an institutional investor, a personal convertible commitment of up to $8.5 million from TLG CEO Mike Lawrie, and other convertible debt to be raised before the contract ends.
The combined company is seeking listing on the NYSE under the symbol “ELIQ.”
Special Purpose Companies (SPACs) like TLG help existing companies go public through mergers or to raise capital through an initial public offering.
Once the hottest ticket on Wall Street, SPACs have also seen sentiment sour due to the poor stock performance of the companies that merged with them. The De-SPAC Index (.DESPACTR), which tracks some of these companies, is down 66% year-to-date.
“Our proposed merger comes at the right time to meet rapidly growing demand in the residential solar storage market, technology development and innovation, consumer and provider demand, and government policy and environmental initiatives,” said TLG CEO Lawrie.
Sourasis Bose reports in Bengaluru; Editing: Devika Syamnath
Our standards: Thomson Reuters Trust Principles.