Electriq Power to go public in U.S. via $495 million SPAC deal

TLG Acquisition One

14/11/2022 14:18

Nov 14 (Reuters) - 
    Solar battery storage company Electriq Power Holdings Inc
said on Monday it would go public through a merger with
blank-check firm TLG Acquisition One Corp  TLGA.N , in a deal
valuing the combined company at $495 million.
    The deal, expected to close during the first half of 2023,
will provide Electriq with up to $125 million of capital through
a combination of debt and equity.   
    Electriq also said it was in advanced talks for up to $60
million of capital from an institutional investor, a personal
convertible debt commitment of up to $8.5 million from TLG Chief
Executive Mike Lawrie, and other convertible debt to be raised
before the deal closes.  
    The combined company is seeking an NYSE listing under the
symbol "ELIQ".
    Special purpose acquisition companies (SPAC) such as TLG
help existing companies go public through a merger or to raise
capital through an initial public offering.
    Once Wall Street's hottest ticket, SPACs have also seen
souring sentiment due to the poor stock performance of companies
that merged with them. The De-SPAC Index  .DESPACTR , which
tracks some of these companies, is down 66% so far this year.   
    "Our proposed merger comes at the right time to address the
rapidly growing demand in the residential solar energy storage
market, technology development and innovation, consumer and
provider demand, and government policy and environmental
initiatives," TLG CEO Lawrie said. 
 (Reporting by Sourasis Bose in Bengaluru; Editing by Devika
Syamnath)
 ((Sourasis.Bose@thomsonreuters.com;))