The Chinese electric car company CH-AUTO Technologies said that it agreed to list its shares for trading in the stock market to become a public company through the SPAC blank check company through a deal worth $1.7 billion, including debt, where the value of this transaction, which will be concluded with an acquisition company for reasons Private called Mountain Crest, with $1.25 billion in equity plus net debt equal to $460 million.
A Special Cause Acquisition Company (SPAC) is a publicly listed company with no business in progress, but it has a huge amount of funding to benefit from in merging with a private company with the aim of making it public, and Mountain Crest is reported to have raised $50 million in an IPO. Initial last June.
The past few years have been challenging for the electric car company, which has had to downsize its business by cutting production of cars and parts, according to founder and CEO Kun Lu, adding that after entering into this merger with Mountain Crest, the company expects to see a positive impact.
The resulting company plans to operate under the name CH Auto and will list its stock on the Nasdaq.
The transaction is expected to close during the fourth quarter of 2022 with Kwun Lu remaining in command of the resulting company.