Lotus EV division enters SPAC deal, will record on Nasdaq

Lotus Know-how, a division of Lotus chargeable for growth of electrical automobiles, is about to go public through a SPAC deal.

Additionally known as a reverse merger, a SPAC deal is the place a personal firm goes public by being taken over by an organization that is already listed, usually one arrange solely for this function, recognized in investor circles as a particular function acquisition firm (SPAC). The benefit is that it avoids the complexity of the extra conventional preliminary public providing which has extra regulatory oversight.

In an announcement on Tuesday, Lotus Know-how stated it has entered right into a reverse merger with the NASDAQ-listed SPAC firm L Catterton Asia Acquisition Corp. The deal is predicted to be accomplished on Thursday, after which the mixed firm, to be referred to as Lotus Know-how Inc., will begin buying and selling on the Nasdaq underneath the ticker image “LOT.”

Lotus Know-how is predicated in Wuhan, China, and was chargeable for the Lotus Eletre electrical SUV and the just lately revealed Lotus Emeya electrical hatchback. It is also growing an electrical compact crossover.

Lotus Eletre

Lotus Eletre

Lotus Know-how is headed by Feng Qingfeng, who will stay CEO of the merged firm after the deal closes. The vast majority of the merged firm will even be owned by Lotus Know-how’s present shareholders which embody Zhejiang Geely, Etika Automotive, and Nio Capital. Etika is a Malaysian provider which along with Geely are the first shareholders of Lotus Know-how’s Lotus dad or mum. Nio Capital is an funding agency based by William Li, the CEO of rival EV agency Nio.

For the reason that authentic announcement of the SPAC deal a yr in the past, greater than $880 million has been raised in pre-closing and personal funding in public fairness financing, Lotus Know-how stated. The corporate has beforehand stated it plans to make use of any raised funds for automobile growth and increasing the gross sales community.

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