ArcLight Clean Transition Corp.

ArcLight Clean Transition Corp. (NASDAQ: ACTC) is a blank check company focused on opportunities created by the accelerating transition toward sustainable use of energy and natural resources.

Key Highlights

• Undergoing legal investigations: Various legal entities are busy in investigating the company regarding possible breaches of fiduciary duty and other violations of law by the board of directors of ArcLight Clean Transition Corp. (NASDAQ: ACTC) in connection with the company's proposed merger with Proterra Inc. Under the terms of the merger agreement, the company would acquire Proterra through a reverse merger that would result in Proterra becoming a public company. 
• Acquiring Proterra: The group is acquiring Proterra, a high-growth commercial electric vehicle technology leader with over a decade of production experience. The transaction has been unanimously approved by the Boards of Directors of both Proterra and ArcLight Clean Transition Corp. It is expected to close in the first half of 2021, subject to the satisfaction of customary closing conditions, including the approval of ArcLight Clean Transition Corp.’s shareholders.

Financial overview

Source: Company

• As of September 30, 2020, the Company had not yet commenced operations. From July 28, 2020 (inception), all activity for the period through September 30, 2020, relates to the Company's formation and the initial public offering. Since the initial public offering's closing, the search for a prospective initial Business Combination is on.
• From July 28, 2020 (inception) through September 30, 2020, the Company posted a net loss of USD 63.748, which consisted of general and administrative costs.

Risks associated with investment

The Company is recently incorporated with no operating history and no revenues. The Company’s search for a business combination, and any target business with which they ultimately consummate a business combination, may be materially adversely affected by the recent coronavirus (COVID-19) outbreak and the status of debt and equity markets.

Stock recommendation

Recently, the company announced acquiring “Proterra” through a reverse merger that will result in Proterra becoming a public company, but at present, various legal entities are busy in investigating the company regarding possible breaches of fiduciary duty and other violations of law by the board of directors of ArcLight Clean Transition Corp in connection with this proposed merger draws a caution line with the investors. Hence, given the above fact, we prefer to remain on the sideline. Hence, we recommend investors to “Avoid” the stock at the closing price of USD 26.5 on February 2, 2021.

Source: Refinitiv (Thomson Reuters)

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