Lightning EMotors to Go Public in Reverse Merger With SPAC (2)

Lightning eMotors, a company that electrifies commercial-vehicle fleets, has agreed to go public through a merger with GigCapital3 Inc., a blank-check company.

The deal is expected to generate gross proceeds of $125 million and gives Lightning eMotors a pro-forma equity valuation of around $823 million, the companies said Thursday in a statement. Bloomberg News had reported the two companies were in talks to merge.

Shares of GigCapital3 jumped 22% in premarket trading Friday.

Lightning eMotors, formerly known as Lightning Hybrids, buys commercial-vehicle chassis from suppliers including Ford Motor Co. and assembles the final, electric versions at its 250,000 square-foot ...