GreenVision Acquisition Shares Increase Over 210% Intraday: Why It Happened

By Amit Chowdhry ● Aug 13, 2021
  • The shares of GreenVision Acquisition Corp. (Nasdaq: GRNV) increased by over 210% during intraday trading. This is why it happened.

The shares of GreenVision Acquisition Corp. (Nasdaq: GRNV) increased by over 210% during intraday trading. Investors are responding to Helbiz — a global leader in micro-mobility — announcing that it completed its business combination with GreenVision Acquisition Corp. (Nasdaq: GRNV, GRNVR, GRNVU, GRNVW), a publicly-traded special purpose acquisition company (SPAC). And GreenVision’s shareholders approved the combination at a special meeting held on August 11, 2021.

The combined company is going to retain the name Helbiz and is expected to begin trading on the Nasdaq Capital Market on August 13th under the new ticker symbol “NASDAQ:HLBZ” for Helbiz common stock and “NASDAQ:HLBZW” for Helbiz warrants.

The deal resulted in approximately $24.5 million of gross cash proceeds, before deducting investment banking fees and other transaction-related expenses. This funding is going to allow Helbiz to expand its micro-mobility services into more cities throughout the U.S. and Europe, including smaller cities that are underserved by public transportation. This will also enable the company to accelerate the development of adjacent service categories like food delivery, integrated payment options, live streaming services and more, all accessible within the Helbiz mobile app. And the Helbiz app is an effective platform to cross-sell new offerings that are “just a tap away” from the consumer.

As part of the business combination, Helbiz is going to retain its experienced management team led by Chief Executive Officer Salvatore Palella, and add one new board member, Lee Stern from the GreenVision team. The remainder of the board is going to be composed of Chief Financial Officer Giulio Profumo and two independent directors Guy Adami and Kim Wilford. 

Adami is currently the Director of Advisor Advocacy at Private Advisor Group, a Morristown, New Jersey organization comprising a network of nearly 600 financial advisors with assets approaching $17 billion. And Adami appears regularly on CNBC as an original member of the Fast Money show. Wilford is currently the General Counsel of GoFundMe where she manages the legal and compliance obligations of the world’s largest social fundraising platform.

Private Placement (PIPE)

The merger and associated PIPE offering enabled Helbiz to raise a total of $29.5 million, $21.5 million of which were the net proceeds from a private placement of 2,650,000 newly issued ordinary shares, and $5 million of which came in the form of canceled debt. The balance of proceeds were assets in a trust held at GreenVision. 

And upon closing, Helbiz will have 29,454,428 shares outstanding: 2,650,000 allocated to PIPE investors, 2,308,551 to shareholders of GreenVision with the balance to pre-merger shareholders of Helbiz. Plus there will be 10,787,500 warrants outstanding. And each warrant entitles the holder to purchase one share of Helbiz Class A common stock at a price of between $11.50 and $12.00 depending on the warrants. The warrants are going to expire in 5 years from their respective issuances.

KEY QUOTES:

“I want to thank our outstanding team at Helbiz for their hard work in making this dream a reality. The public debut of Helbiz is a significant milestone, not only for us as a company, but for the rapidly growing micro-mobility industry. This transportation revolution has allowed us to advance our mission to solve first-and-last-mile mobility needs for cities around the world with zero impact on the environment. Now operating in 35 international cities, we are committed to providing safe, innovative micro-mobility solutions that are needed to reduce each city’s congestion, pollution and carbon footprint. With this new funding, we look forward to making life better in even more cities around the world.”

“We are thrilled to welcome the new Helbiz board of directors, who bring decades of operational experience from multiple public companies. Their expertise in corporate strategy, finance, sales, marketing and corporate governance will serve as an invaluable asset as we scale our operations.”

— Salvatore Palella, Chief Executive Officer of Helbiz

“I am thrilled to join the Board of Helbiz and to support management in creating the world’s premier micro-mobility transportation company. I am impressed and inspired by the Helbiz management team. They have built an environmentally and socially responsible company, and I look forward to helping them navigate the opportunities and challenges ahead.”

— Kim Wilford

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.