Lotus Technology Inc. – a China-based subsidiary of Geely-owned Lotus Group - has signed agreements for a total of approximately $870 million of private investment in public equity financing and convertible notes this year.
According to GlobalData’s deals database, the agreements have been entered into ahead of the anticipated completion of Lotus Tech’s planned merger with L Catterton Asia Acquisition (LCAA) Corp, a special purpose acquisition company (SPAC) formed by affiliates of L Catterton, an investment firm.
Wuhan-based Lotus Technology said earlier this year that it will go public in the US (Nasdaq) via the merger with the LCAA SPAC. L Catterton is an investment firm backed by luxury goods giant LVMH Louis Vuitton Moet Hennessy.
All of the financing agreements were signed based on a US$5.5 billion pre-money valuation, with the investors expected to be issued public shares upon closing of the planned merger.
“As a leader in the electrification of luxury vehicles, Lotus Tech is poised to leverage the segment’s rapid growth as we cater to unmet market needs. The US$870 million of funding commitments we have received this year demonstrates global investors' confidence in Lotus Tech's performance and growth potential. We are thankful for our strategic collaborators’ and investors’ enthusiasm about accelerating our progress as Lotus Tech moves toward completing the planned business combination with LCAA,” said Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech.
The funds raised are intended to be used to further advance Lotus Tech’s development of next-generation automobility technologies, promote product innovation, support the company's expansion of its global distribution network, and for general corporate purposes.
Upon completion of the transactions contemplated by the merger agreement, Lotus Tech will become a Nasdaq-listed public company. The combined company is expected to retain Lotus Tech's name as “Lotus Technology Inc.” and its ordinary shares represented by American Depositary Shares (ADS) are expected to be listed under the ticker symbol “LOT”.
Lotus Tech is the technology, sales and marketing division of Lotus brand. Its first fully electric hyper SUV, Eletre, is expected to begin delivery in China, EU and UK in 2024. It says planning is underway for future delivery of Eletre to the US and rest of the world, leveraging the Lotus brand’s global network across these core regions.
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