What's up guys and welcome back to the
channel we have had an important update
in the GGPI/Polestar merger. In the past
few days. Where it looks as if we finally
have a date for the merger to take place
after the date of the stockholder
special meeting has been revealed
and this will be the main focus of this
video, but I will also discuss why I
think POLESTAR is great value right now.
and compare polestar to its rivals such
as tesla, lucid and even nio.
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making update videos as we get more news
now let's get into today's video.
So for a little bit of background about
the company ggpi gorges guggenheim went
public with its ipo in march 2021 the
firm is backed by serial entrepreneur
billionaire alec gores and the
guggenheim investment group.
If you're not familiar with gores
or the guggenheim investment group
these have a long history and track
record of investing in and operating
businesses
back in september goes guggenheim
announced his plans for a reverse merger
with the ev maker Polestar
Polestar is a global pureplay premium
electric vehicle company based in sweden
with the mission to produce progressive
electric performance cars designed and
engineered without compromise they say
that they are design focused electric
performance care brand harnessing
refining performance and cutting edge
technology
and Polestar is backed by the volvo car
group and Geely automotive
but also has support from celebrities
such as hollywood actors leonardo
dicaprio and oscar isaac. So over the
past couple of months it has been very
quiet for ggpi stock which had recently
seen the share price drop back into the
10 range down from its 52-week high of
over 16
but we have known for a long time that
the merger is expected to take place in
the first half of this year which leads
us on to the latest news
although there has been no official
announcement from either gore's
guggenheim or pole stare yet
if we look at the recent sec filings for
gore's guggenheim we can see that
earlier this week on march 28th the
company filed the form
f4 a
so looking at this form we can see that
this is the fourth amendment to the form
f4
that we've had so far and this form is
filed in relation to registration of
securities by foreign issuers
now this is a very long form
it looks to be hundreds of pages but
there is a very important section just
here notice of stockholders special
meeting to be held 2022 now there is no
date issued on this form which I think
is a bit unusual instead there is a url
link which brings you to a website and
we can see that here
the special meeting of stockholders for
2022 is set
for monday may 16th
so this is a huge date for shareholders
now this is the fourth amendment to this
form
and this will need to be accepted by the
sec but then the shareholders meeting
will take place and there will be a vote
to approve the merger I fully expect
that there will be no issue with this
and as long as the merger is approved
the merger could take place as soon as
the following day
with this meeting scheduled for a monday
i would fully expect the pulse there
will be a nasdaq listed during that week
so i'll be keeping an eye on ggpi's sec
filings over the coming weeks to stay up
to date with every development that
comes this way
as I said a moment ago ggpi has been
very quiet over the past few weeks and
the share price has dropped down from
its high point
so naturally enough there is a lot of
negative comments from people who
clearly do not understand just how far
ahead of most av companies that pollster
really is
so I have compiled this short list just
comparing Polestar to some of its
closest rivals i've included nio here
because nio will be rivaling Polestar in
the european and asian markets polstar
is by far the lowest value of these
companies with an enterprise valuation
of just 22 billion dollars but Polestar is
miles ahead of most tv companies now
i've left out a lot of other ev
companies here such as chinese companies
like x-ping because this will not be
competing with pulse there on a global
scale or the likes of fisker or mullen
automotive because these do not yet have
any evs on the market in comparable
years
so despite the low valuation ulster have
sold far more vehicles than lucid or
rivien in 2021 and the projections for
2022 showed that gap to be widening even
more
now this is not me trying to disrespect
any of these other ev companies these
are just the facts
and whereas supply issues and scaling up
production could severely impact lucid
rivien and neo
polstar are in a unique position due to
their relationship with volvo and julie
auto mobile
scaling up production will not be an
issue given the scale that geely are
already operating at during 2021 geely
sold a total of 1.3 million units
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during 2021 I posted about several
stocks that made huge gains
and I will be adding far more to this
during 2022
and in terms of valuation the postar
deal will be supported by cash proceeds
of around 800 million dollars from
gore's guggenheim and includes a pipe
or private investment in public equity
of 250 million dollars from top tier
institutional investors
now because Polestar is not yet a public
company until the merger is complete we
do not have a set of financial
statements to look at
but the financial overview is also part
of the march 2022 investors presentation
they have recorded estimated revenue of
1.4 billion for 2021 and expect 3.1
billion this year with 17.6 billion
dollars expected in revenue by 2025.
i did a video in the past two weeks
looking at neos 2021 financials and
neo-recorded revenues
of 1.5 billion dollars for 2021 so
although nio is still far ahead of
Polestar in terms of deliveries the
revenue figures are actually pretty
close
and the company is expecting to hit
break even levels next year and turn
profitable by 2024
again comparing this with rivals such as
lucid tesla and nio we can see just how
favorably pulse there is in comparisons
to these
looking at the charts over the past few
weeks we can see the ggpi stock hit rock
bottom on march 15th and like a lot of
other stocks has been on an upward trend
ever since then
the price movement has been positive and
we are seeing consecutive higher highs
and higher lows and volume for the stock
is quite low right now but once we have
a press release confirming the date of
the shareholders meeting I fully expect
for there to be a lot of interest in
this stock again
and I expect to see the share price
increase rapidly as this gets closer and
closer to the merger date
as always this is not financial advice
and I am not a financial advisor my
videos should be viewed for
entertainment purposes I highly
recommend investing only money that you
can afford to and always do your own due
diligence when investing
so guys what do you think about poster
and what do you expect in the coming
weeks as we draw closer to the
shareholders meeting
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comment i'll be making update videos as
soon as we get more news so if you're
new subscribe to the channel and i'll
catch you in the next update video
you