Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

QuantumScape Corp / Equity Capital Markets

It was reported last week that <a href="https://www.smartkarma.com/entities/quantumscape-corp" target="_blank" data-smartkarma-citation="entities:29270:1" rel="noopener">QuantumScape Corp (QSC US)</a> QuantumScape, a 10-year old battery start-up, plans to go public through a reverse merger with Kensington Capital Acquisition Corp. Recently, <a href="https://www.smartkarma.com/entities/canoo-inc" target="_blank" data-smartkarma-citation="entities:29247:1" rel="noopener">Canoo Inc (1816619D US)</a>, an EV player, also reported that it wants to take the SPAC route for an IPO ( <a href="https://www.smartkarma.com/insights/canoo-pre-ipo-business-model-and-growth-prospects-interesting-though-still-in-the-planning-stage" target="_blank" data-smartkarma-citation="insights:42495" rel="noopener">Canoo Pre-IPO(Business Model and Growth Prospects): Interesting, Though Still in the Planning Stage</a>). In this insight, we take a look at QuantumScape and how successful it can be with its solid-state battery technology (yet to be commercialised) competing with EV battery leaders like CATL, Panasonic, LG Chem, and Samsung SDI, which are all continuously fighting for market share.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/157/715/original/image_13228739741599554897023.png?1599554897" class="editor-image img-responsive" data-smartkarma-image-id="157715"></figure>We go through the details below.

It was reported last week that QuantumScape Corp (QSC US) QuantumScape, a 10-year old battery start-up, plans to go public through a reverse merger with Kensington Capital Acquisition Corp. Recently, Canoo Inc (1816619D US), an EV player, also reported that it wants to take the SPAC route for an IPO ( Canoo Pre-IPO(Business Model and Growth Prospects): Interesting, Though Still in the Planning Stage). In this insight, we take a look at QuantumScape and how successful it can be with its solid-state battery technology (yet to be commercialised) competing with EV battery leaders like CATL, Panasonic, LG Chem, and Samsung SDI, which are all continuously fighting for market share.We go through the details below.

QuantumScape: VW-Backed EV Battery Player to Take SPAC Route for an IPO

It was reported last week that EV start-up <a href="https://www.smartkarma.com/entities/canoo-inc" target="_blank" data-smartkarma-citation="entities:29247:1" rel="noopener">Canoo Inc (1816619D US)</a> and Hennessy Capital Acquisition Corp. IV (“HCAC”) (NASDAQ: HCAC), a special purpose acquisition company (SPAC), announced their entry into a definitive agreement for a business combination that would result in Canoo becoming a publicly-listed company on the Nasdaq Stock Market under the ticker symbol “CNOO”.Reported details about the agreement:<a target="_blank"></a><ul>
<li>The combined company will receive approximately $600 million in proceeds from an upsized, fully committed common stock PIPE (private investment in public equity) offering of over $300 million, along with the approximately $300 million in cash held in trust, assuming there are no redemptions of HCAC’s existing public stockholders.</li>
<li>Expected to be completed by Q4 2020.</li>
<li>Needs to be approved by HCAC shareholders and clear other customary conditions.</li>
<li>The business combination values Canoo at an implied $2.4 billion pro forma equity value, at $10.00 per share assuming no redemptions of HCAC’s existing public stockholders.</li>
</ul>In this note, we take a look at Canoo’s business model and growth prospects and how the EV start-up is different from the traditional EV players like Tesla and Nio. We will do a follow up on financial outlook and valuation, comparing the company with its peers. We go through the details below.

It was reported last week that EV start-up Canoo Inc (1816619D US) and Hennessy Capital Acquisition Corp. IV (“HCAC”) (NASDAQ: HCAC), a special purpose acquisition company (SPAC), announced their entry into a definitive agreement for a business combination that would result in Canoo becoming a publicly-listed company on the Nasdaq Stock Market under the ticker symbol “CNOO”.Reported details about the agreement:
The combined company will receive approximately $600 million in proceeds from an upsized, fully committed common stock PIPE (private investment in public equity) offering of over $300 million, along with the approximately $300 million in cash held in trust, assuming there are no redemptions of HCAC’s existing public stockholders.
Expected to be completed by Q4 2020.
Needs to be approved by HCAC shareholders and clear other customary conditions.
The business combination values Canoo at an implied $2.4 billion pro forma equity value, at $10.00 per share assuming no redemptions of HCAC’s existing public stockholders.
In this note, we take a look at Canoo’s business model and growth prospects and how the EV start-up is different from the traditional EV players like Tesla and Nio. We will do a follow up on financial outlook and valuation, comparing the company with its peers. We go through the details below.

Canoo Pre-IPO(Business Model and Growth Prospects): Interesting, Though Still in the Planning Stage

United States

Canoo Inc. provides automobiles. The Company offers electric vehicles on a subscription basis. Canoo serves clients in the United States.

Canoo Inc (1816619D US)

QuantumScape: VW-Backed EV Battery Player to Take SPAC Route for an IPO

It was reported last week that QuantumScape, a 10-year old battery start-up, plans to go public through a reverse merger with Kensington Capital...

Aqila Ali

Canoo Pre-IPO(Business Model and Growth Prospects): Interesting, Though Still in the Planning Stage

It was reported last week that EV start-up Canoo Inc (1816619D US) and Hennessy Capital Acquisition Corp. IV (“HCAC”) (NASDAQ: HCAC), a special...

Aqila Ali