QuantumScape, the Bill Gates-backed company trying to develop solid-state batteries, is now on the cusp of going public by merging with the Special Purpose Acquisition Company (SPAC), Kensington Capital Acquisition Corp. (NYSE:KCAC).
As per the Form 424B3 filed by Kensington Capital with the SEC today, a special meeting of the shareholders will be held on the 25th of November 2020 to approve the proposed business combination with QuantumScape.
“Kensington is holding a special meeting of its stockholders in order to obtain the stockholder approvals necessary to consummate the Business Combination. At the Kensington special meeting of stockholders, which will be held on November 25, 2020, at 10:00 a.m., Eastern time, via live webcast at www.virtualshareholdermeeting.com/KCAC2020, unless postponed or adjourned to a later date, Kensington will ask its stockholders to adopt the Business Combination Agreement, thereby approving the Business Combination, and approve the other proposals described in this proxy statement/prospectus/information statement.”
If the business combination proposal is approved by Kensington Capital’s shareholders, the shares of the combined company will be listed on the New York Stock Exchange under the ticker symbol – QS. Bear in mind that the enterprise value of the combined company is currently estimated at $3.3 billion.
Following today’s momentous announcement, Kensington Capital shares are up over 5 percent in after-hours trading. Year to date, the stock has generated a gain of over 242 percent.
As a refresher, QuantumScape claims to have spent over $300 million in R&D to produce a commercially viable lithium-metal solid-state battery. As per the claims of the company, the elimination of anode host materials from these batteries delivers significant cost savings while also increasing the energy density by 88 percent relative to a conventional lithium-ion battery. Crucially, this battery also allows for a 0 to 80 percent fast-charge in 15 minutes!
In a development that is bound to boost confidence in QuantumScape’s technology, Volkswagen increased its stake in the startup by $200 million in June 2020, with much of the investment focused on solid-state battery research. Of course, Volkswagen’s investment makes intuitive sense. As an illustration, a viable solid-state battery would enhance the range of the E-Golf to 750 kilometers while also delivering added safety and faster recharging times. Moreover, QuantumScape also enjoys backing from Microsoft (NASDAQ:MSFT) founder Bill Gates, German auto supplier Continental, Chinese automaker SAIC Motor, and a number of venture capital firms.
The post QuantumScape – the Solid-State Battery Startup – Now Expected To Formalize Its Merger With the SPAC Kensington Capital (KCAC) on the 25th of November by Rohail Saleem appeared first on Wccftech.
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