Mountain Crest Acquisition IV today in an 8-K filing included an investor presentation on its pending deal with CH-AUTO, an electric vehicle manufacturing and design service company based in China.
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 CH-AUTO 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. The agreement provides that any additional debt will reduce the purchase price. Read more.
