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?
Positions
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.