Lilium in Talks to Go Public via SPAC Merger
Lilium, a German company that makes electric vertical takeoff and landing passenger jets, is in talks with a special purpose acquisition company (SPAC), Qell Acquisition Corp., according to a new report from Bloomberg.
The two companies are still just talking right now, but Bloomberg’s source said that the potential value for the combined companies could be above $2 billion.
Lilium is relatively young, having been started just five years ago, but it’s gained lots of interest among private investors.
Last year Lilium raised $35 million from Baillie Gifford, valuing the company above $1 billion. According to Lilium’s website, the company has raised more than $375 million in funding to date.
Lilium is still developing its on-demand air taxis and aims to make them available by 2025. The company is tapping into the massive air mobility market, which will be worth an estimated $115 billion by 2035.
Electric Aviation IPOs: Hitting the Market Fast
Just like electric automobiles have become the main focus of large automakers recently, electric aircraft is becoming more important in the aeronautical market.
Just last month, the electric aircraft startup, Archer Aviation, announced that it was going public by merging with the SPAC Atlas Crest Investment Corp. in a $3.8 billion deal. Like Lilium, Archer is developing electric vertical takeoff and landing passenger jets. United Airlines is an investor in Archer and has already ordered $1 billion worth of aircraft from the company.
Also, on February 24th Joby Aviation announced it would be merging with Reinvent Technology Partners, a SPAC. The deal values Joby at $6.6 billion post-money and provides $1.6 billion in gross proceeds.
While you can see the natural excitement over the race to discover the “Tesla of the skies,” keep in mind most electric aircraft companies are still a long way from substantial revenue. On February 9th Joby issued a press release that it generated its first revenue.
While the long-term upside of the industry may be lucrative, paying multiple billions in valuation for a pre-revenue company also carries risks.
How Do You Buy Lillium Stock Today?
As of right now, there is no date set for Lilium to go public, nor is there any firm deal between Lilium and Qell, to merge. If a SPAC agreement is reached, the likely timeline would be Lillium completing its merger with Qell would be in mid-2021.
Lilium isn’t yet a publicly-traded company, so it doesn’t have a stock symbol right now. If a merger agreement is struck, you would be able to effectively own Lillum by buying Quell Acquisition Corp. (Nasdaq: QELL) shares.
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