CH Auto Technology and Mountain Crest Acquisition seal landmark merger

CH Auto Technology Corporation Ltd. (CHATC), a leading Chinese electric vehicle manufacturing and design service company, has successfully completed a business combination with Mountain Crest Acquisition Corp. IV (Nasdaq: MCAF), a Delaware-based special purpose acquisition company.

The merger, which was finalized on March 28, 2024, saw CH Auto acquiring a majority stake of 71.2184% in CHATC’s voting rights and the subsequent merger of CH-Auto Merger Sub Corp. into MCAF, with MCAF emerging as the surviving entity. This strategic move consolidates CH Auto’s position in the electric vehicle sector, with Qun Lu, founder and CEO of CHATC, continuing to lead the company as Chairman, CEO, and CFO.

As part of the merger, MCAF’s common stock and rights were converted into CH Auto’s Class A ordinary shares, with a 10 to 1 conversion rate for the rights. Post-merger, MCAF’s common stock ceased trading on The Nasdaq Stock Market.

CH Auto’s securities, including its Class A ordinary shares, will not be listed on any securities exchange until the company completes the necessary filing procedure with the Chinese Securities Regulatory Commission (CSRC). CH Auto has initiated this process and is awaiting a response from CSRC. If approved, CH Auto intends to list its securities on The Nasdaq Stock Market.

Despite the initial conditions set in the Merger Agreement, which included the listing of CH Auto’s Class A ordinary shares on The Nasdaq Stock Market and obtaining all necessary governmental approvals, CHATC, MCAF, CH Auto, and Merger Sub opted to waive these conditions to proceed with the business combination.

Qun Lu expressed his enthusiasm for the merger, highlighting CH Auto’s innovative technology and its vision to become a global player in the new energy vehicle market. Dr. Suying Liu of MCAF also shared excitement over the merger’s completion, emphasizing CH Auto’s role in driving innovation and growth in electric mobility.

This merger marks a pivotal step in CH Auto’s globalization strategy, aiming to establish the company as a pioneer of Chinese new energy vehicle technology on the international stage.

Chinese auto firm expands in Romania amid nearshoring trend

Add a Comment

Your email address will not be published. Required fields are marked *