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Ch-Auto Technology to Go Public via $1.25 Billion SPAC Merger in US

MT Newswires ·  05/02/2022 23:15

11:13 AM EDT, 05/02/2022 (MT Newswires) -- Ch-Auto Technology Corp. Ltd. said Monday it has agreed to merge with blank-check company Mountain Crest Acquisition Corp. IV (MCAF) in order to go public in the US.

After the deal closes, the combined company will be named Ch Auto Inc. and trade on the Nasdaq Stock Market. Ch-Auto Technology's Founder and Chief Executive Qun Lu will act as the CEO of the merged entity, the Chinese electric vehicle manufacturer and designer said.

The transaction reflects an initial equity value of about $1.25 billion and is set to close in Q4, subject to the approval of Mountain Crest and Ch Auto Inc. stockholders and satisfaction of other customary closing conditions, the company added.

Under the agreement, each Mountain Crest share will be exchanged for one share of the combined entity, and Ch-Auto Technology shareholders and the pre-existing shareholders of the merged company will be entitled to get 125 million shares at $10 apiece in the combined company, Ch-Auto Technology said.

Ch Auto Inc. will assume net debt outstanding of about $460 million, for a total purchase price of roughly $1.7 billion as part of the agreement, the company added.

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