Here’s another asian SPAC on top of our beloved $AGC Grab merger :’ ) However, this looks more like a longer-term play. I am posting this DD because I am wondering if anyone else has heard of this merger and has more detailed outlook to share. It seems to be flying under the radar while its warrants pump over 100% over the last month or so.
About Gogoro Global
Gogoro is a Taiwanese startup specializing in two product lines:
Smart Energy. This is an ultra-efficient battery swapping network across Taiwan where scooters are a dominant method of transportation. Here is a map of their 2,335 battery swapping sites in Taiwan: https://www.gogoro.com/findus/
Smart Vehicles. Gogoro offers 7 different models of 2-wheel electric scooters. Gogoro Smartscooter® — A ride like no other.
The SPAC Merger Transaction
Poema (PPGH) at its January IPO has previously said it’s focused on finding a company in Asia or Europe that has “validated technologies and attractive unit economics”.
Definitive Agreement with Gogoro. The business combination sets Gogoro’s enterprise value at $2.35 billion. The business combination is expected to provide approximately $550 million in proceeds (assuming no redemptions) to Gogoro’s balance sheet including an oversubscribed PIPE of over $250 million as well as $345 million currently held in trust by Poema Global.
The DA was announced on September 16, 2021 and is expected to close in Q1 2022.
Gogoro’s International Expansion Out of Taiwan
Use of the $550 million proceeds include expansion into China, India and Southeast Asia and no doubt they will look to expand further:
Gogoro partners with two of China’s largest motorbike companies: Gogoro's biggest announcement yet sees major international expansion
Scroll down this link to see all of the news related to expansions as well as the recent recognition by Frost & Sullivan for “revolutionizing the electric two-wheeler market with its swappable battery approach”.
One area of concern is the rising tension between Taiwan and China. This could put a dent in the China expansion plans. However, nothing’s stopping Gogoro from making deals elsewhere?
1000 x PPGHW at 0.80
I first learned about PPGH via this Reddit post when I was searching u/fastlapp’s comment history. No options available. I noticed that PPGHW has been steadily increasing in value over the last few weeks and is now worth 1.89, despite the underlying stock staying flat at $10. This might be an interesting play as the merger finalizes and as Gogoro continues to expand.