Lotus Expertise, a division of Lotus that develops electrical automobiles, has introduced that it’s about to go public by a SPAC cope with a Nasdaq-listed firm referred to as L Catterton Asia Acquisition Corp.
A SPAC deal, also referred to as a reverse merger, happens when a personal firm goes public by being acquired by an already listed firm, usually one fashioned particularly for this objective and recognized in investor circles as a Particular Objective Acquisition Firm (SPAC). The profit is that it avoids the complexities (particularly, regulatory necessities) of launching an IPO.
Lotus and L Catterton’s SPAC transaction will worth the mixed entity at $5.4 billion. The mixed entity’s shares could be listed on the Nasdaq beneath the ticker image “LOT.” The corporate didn’t specify when the transaction could be start.
Lotus Expertise said that the funds raised from the IPO will likely be used to fund automobile improvement and to develop its world distribution community.
Lotus Expertise is predicated in Wuhan, China, and is accountable for the Lotus Eletre electrical SUV. It is usually engaged on two different Lotus EVs, a sedan and an SUV. It’s led by Feng Qingfeng, who will stay CEO following the merger.
Geely, Etika Automotive, and Nio Capital are Lotus Expertise’s current shareholders, and they’ll retain 89.7% of the corporate after the IPO closes. The principle shareholders are Geely and Etika. Volvo and Polestar are two different Geely-owned which have gone public just lately.