Jupiter Wellness Acquisition today announced a definitive merger agreement with Chijet Motor Company in a deal that values Chijet’s operating companies at $1.6 billion.
The news comes less than a month after another SPAC, Deep Medicine Acquisition, called off a merger with Chijet. That deal was valued at $2.6 billion when announced in July. No reason was given for the termination, although Deep Medicine had twice extended the time period for its due diligence on the EV automaker.
In this latest deal, of the aggregate $1.6 billion, $674 million is subject to potential surrender and cancellation after the closing of the transaction for Chijet failing to achieve certain financial performance or stock price metrics. Upon completion of the transaction, Chijet currently expects proceeds will be approximately $140.2 million before payment of transaction expenses (assuming no SPAC shareholder redemptions).
The cash proceeds raised in the transaction are anticipated to be used for the construction of Chijet’s Yantai electric vehicle manufacturing base and to fund company operations, support its growth and for general company operating purposes. Following completion of the proposed transaction, Chijet plans to raise additional capital to further its planned expansion of production capacity and product offering to include new models of electric vehicles.
Two new production facilities, occupying a total area of 8.47 million square feet with annual production capacity of 200,000 vehicles, are currently under construction in Xiangyang and Yantai, China. Read more.
