Deep Medicine Acquisition today announced a merger agreement with Chijet Motor Company, a Chinese automaker, which is developing electric vehicles and expanding its manufacturing capabilities.
The business combination has an implied enterprise value of $2.55 billion, including Chijet’s 85.17% ownership interest in Shandong Baoya New Energy Vehicle Co., Ltd., the Chinese company that is developing new EV models, and 64.82% interest in FAW Jilin, the company producing and selling traditional fuel vehicles.
If approved, upon completion of the deal Chijet is expected to have approximately $127.8 million in cash, assuming no redemptions by DMAQ shareholders. Deep Medicine raised $110 million last October in an IPO.
Chijet expects to use the transaction proceeds to fund the development and production of its planned next-generation electric vehicle, with sales expected to increase as new models are launched and two production facilities, occupying a total area of 8.47 million square feet with annual production capacity of 200,000 vehicles currently under construction in Xiangyang and Yantai, China, are completed.
The deal is expected to close by the end of the fourth quarter, the companies said. Read more.
