CH-AUTO, an electric vehicle manufacturing and design service company based in China, and Mountain Crest Acquisition IV today announced a definitive merger agreement.. The transaction reflects an initial equity value of approximately $1.25 billion and, if approved, is expected to close in the fourth quarter.
Upon closing, the combined company will operate under a holding entity named CH AUTO and trade on the Nasdaq.
Terms call for shareholders to receive approximately 125 million shares valued at $10 per share in the merged company, subject to closing adjustments, and the new company will assume net debt outstanding of approximately $460 million, for a total purchase price of approximately $1.7 billion. The agreement provides that any additional debt will reduce the purchase price. Read more.
