GigCapital3 Inc. (GIK) stock jumped price in the after-market; here’s why

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In the after-market, GigCapital3 Inc. (GIK) shares surged to $9.55 increasing by 9.39% at the time of writing. GIK stock previously closed at $8.73 which is a loss of-3.54%. The stock volume traded today is 0.47 million shares. The average volume of trade for the past 3 months has been 1.56 million. In the past week, GIK stock slumped by -13.31%. GigCapital3 Inc. is currently valued in the market at $252.04 million and has 25.89 million outstanding shares.

What is GigCapital’s Mentor-InvestorTM methodology?

GigCapital Global is an investment company that focuses on Private-to-Public Equity (PPE) technology, media, and telecommunications corporations. The company specifically focuses on asset acquisition, recapitalization, and reorganization, and business combinations for one or more businesses.

The company consists of a team of technology industry corporate executives and private experts. There are also entrepreneurs and operational TMT expert individuals from the public and private markets. GigCapital Global was introduced with the aim to boost and develop the TMT Private to Public Equity companies and become the leading franchise. The operational model for the company is set around a unique Mentor-InvestorsTM model that allows the team at GigCapital to discover TMT companies with high-functioning expert management.

Announcement of Business Combination between GigCapital3 and Lightning eMotors

On 12th April 2021, GigCapital3 which is one of GigCapital’s Private-to-Public Equity Corporations had announced that it wanted shareholders to vote for the merger with Lightning eMotors. This voting was to take place on 21st April 2021, in the Special Meeting of Stockholders.

TheGigCapital3 merger with Lightning eMotors was first announced on 19th November 2020; Lightning eMotors going public via GigCapital3. The news was followed by numerous investigations by law and investigational firms into the fairness of the merger. However, the investigations did not deter eMotors from its operational advancements which included the launching of the new 4th generation Electric Transit Class 3 Van in December 2020 and several orders for its electric line of vehicles.

GigCapital3 wants to take a piece of the lucrative EV market share. GIK stock sees the potential in innovative penetration of the electric-vehicle producer (Lightning eMotors) into the EV market despite it becoming concentrated and increasingly competitive. The Compound Annual Growth Rate of the EV market (CAGR) according to a report puts it at 41.5% from 2020 to 2027; the market is still flourishing and expanding, so this move is being made at the right time.

How did GIK’s Special Meeting of Shareholders unfold?

On 22nd April 2021, GigCapital3 announced that the voting for the merger on 21st April 2021, Special Meeting of Shareholders went successfully as the majority (more than 98%) of voting shareholders approved the merger of the two companies. GIK is expected to submit the 8-K file that holds all the voting results, with the SEC. The finalization of the closing date of the business combination will soon be updated.

The combined new company will be traded on the New York Stock Exchange under the symbols “ZEV” and “ZEV.WS” respectively. One share of common stock of GigCapital3 will be traded under “ZEV” while three quarters of one will share under the new “ZEV.WS”, leaving no longer GigCapital3 as separate security for trading.

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