Embark SPAC Presentation Deck slide image

Embark SPAC Presentation Deck

Transaction Overview • After giving effect to the transaction (1), Combined Co. will have $613mm of cash (³) to pursue its go-to-market strategy and consolidate its market leadership position $4.25bn pre-money valuation supporting $5.2bn pro forma equity value ● 1.6x of 2025E Revenue • Proceeds raised are expected to fully fund capital expenditures through 2024 and are 100% primary • The transaction is expected to close Q3 2021 11 NORTHERN GENESIS II Illustrative Transaction Sources and Uses Total Sources Northern Genesis II Cash in Trust (1) PIPE (2) Northern Genesis II Founder Shares (4) Stock Consideration to Existing Embark SH Total Sources Total Uses Cash to Balance Sheet Northern Genesis II Founder Shares(4) Stock Consideration to Existing Embark SH Estimated Fees and Expenses Total Uses Pro Forma Valuation Pro Forma Shares Outstanding Illustrative Share Price Pro Forma Equity Value (-) Pro Forma Cash (³) Pro Forma Enterprise Value ($mm) $414 200 100 4,250 $4,964 ($mm) $531 100 4,250 83 $4,964 ($mm) 515.8 $10.00 $5,158 (613) $4,545 $2,771 1.6x Pro Forma Ownership(1)(5) @ $10.00 per Share Pro Forma Ownership Shares (mm) 41.4 NGAB Shareholders PIPE Investors(2) 20.0 10.0 444.5 515.8 Founder Shares(4) Existing Embark SH(5) (6) (7) Total Shares 86% 8% 4% 2% % O/S ■ 8.0% 3.9 1.9 86.2 100.0% ▪ NGAB Shareholders PIPE Investors ▪ Founder Shares(4) Existing Embark SH (5)(6)(7) 2025E Revenue EV / 2025E Revenue (1) Assumes no redemptions by SPAC shareholders. (2) Includes $40mm of FPA subscriptions. (3) Includes $82mm of existing balance sheet cash, including proceeds from a convertible note. (4) Excludes 0.4mm Founder Shares forfeited due to FPA subscription to PIPE. (5) Excludes PSU awards to Alex Rodrigues and Brandon Moak that will collectively represent an aggregate amount of up to 10% of the fully-diluted shares outstanding immediately following closing and that are anticipated to vest at escalating thresholds starting at approximately $20/share up to a maximum of approximately $100/share. Excludes the impact of up to 2.9mm existing Embark shares underlying equity awards that can be issued prior to closing. Excludes the new, to be established, equity incentive plan (10% of FD shares outstanding immediately following closing + 5% evergreen) and ESPP (2% of FD shares outstanding immediately following closing + 1% evergreen). (6) Embark currently has 149.1mm diluted shares outstanding that will be fully converted into NG shares at close, of which 141.2mm are fully vested. This Includes 5.9mm existing Embark shares underlying options and warrants, 3.9mm existing Embark shares underlying granted options, 2.8mm existing Embark shares promised but not yet granted shares to new employees and 1.2mm Embark shares issuable upon conversion of an outstanding convertible note immediately prior to close. (7) Founders Alex Rodrigues and Brandon Moak, who collectively own approximately 25% of the Company on an as-converted basis pre-closing, will receive shares of Class B Common Stock of NGAB in the transaction, which shares of Class B Common Stock carry 10 votes per share (relative to one vote per share of Class A Common Stock of NGAB). 46
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