Geely-backed sports car maker Lotus to close SPAC deal next month, report says

Asian Tech Press (Nov 13) -- Lotus, the sports car brand backed by Chinese auto conglomerate Geely, is reportedly planning to complete a SPAC merger deal next month.

According to Chinese media outlet Cailianshe's report on Monday, Lotus, which is seeking to go public with a SPAC merger in the U.S., plans to complete the merger deal next month and formally land on the Nasdaq under the ticker symbol "LOT".

In response to the news, Lotus said that the company's IPO efforts are continuing to progress in the expected direction.

A Lotus insider also revealed that "the company is currently waiting for confirmation from the relevant regulatory authorities."

In late January, Lotus announced that it had reached a definitive merger agreement with blank check company L Catterton Asia Acquisition Corp (LCAA), with the merger set to conclude in the second half of 2023.

At the time, Lotus said, "The merger values the company at approximately $5.4 billion."

Lotus Technology Inc., the entity for the listing, was formally established on August 31, 2021 and its global headquarters is located in Wuhan, China.

The company plans to launch four all-new models by 2026, including SUVs, pure electric coupes, and crossover models.

Notably, in addition to Lotus, several Geely-backed businesses have completed or are in the process of U.S. IPOs.

Last week, Geely's premium electric vehicle brand Zeekr formally filed an IPO with the U.S. Securities and Exchange Commission (SEC).

Last June, Geely, Volvo-backed premium EV brand Polestar debuted on the Nasdaq after completing a merger with special purpose acquisition company (SPAC) Gores Guggenheim, and has begun trading under the ticker symbol "PSNY" on June 24, 2022.

And in December 2022, Geely-backed tech startup Ecarx completed a merger deal with COVA Acquisition Corp., and also successfully listed on the Nasdaq.

"The independent listing of Geely's sub-brands, will enable Geely to achieve the ability to scale up its operations at a time of fierce competition in premium new energy vehicle market," analysts said.

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