Northern Genesis Acquisition Corp.

NGA Details

Looking for a Merger: Northern Genesis Acquisition Corp. (NYSE: NGA) is a blank check company focused on forming a merger or a business combination with one or more businesses or entities. The company has raised $300 million from the net proceeds of the sale of the Units in the Initial Public Offering (IPO) and the sale of the Private Placement Warrants. NGA intends to create a business combination using cash from the proceeds of the IPO and the sale of the Private Placement Warrants, its capital stock, debt or a combination of cash, stock, and debt. As on 25 November 2020, the company’s market capitalization stood at ~$508.73 million.

September 2020 Quarter Highlights: So far, the company has not commenced any operations and not generated any revenue. For the September 2020 quarter, the company reported a net loss of $124,414 and basic and diluted net loss per share of $0.02. As on 30 September 2020, the company had total current assets of $1,709 million, comprising cash of $1.54 million and prepaid expense of 168,847.

Q3FY20 Results (Source: Company Reports)

Future Focus: Looking ahead, the company is focused on creating a merger or a business combination to make a positive contribution to sustainability through the ownership, financing, and management of societal infrastructure.

Stock Recommendation: Over the last one month, the stock of NGA has provided a return of 32.02%. The stock recently touched its all-time high price of $13.71. On the technical analysis front, the stock has a support level of ~$10.79 and resistance of ~$13.69. NGA is exposed to the risks associated with early-stage and emerging growth companies. AS NGA has no operating history and no revenue, it is hard to evaluate the company’s ability to achieve its business objective. Considering the absence of any development with regards to merger, rise in the share price, current trading levels, associated key risks, we are giving an “Avoid” rating on the stock at the closing price of $12.74, up by 11.56% on 25 November 2020.

NGA Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

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