Mountain Crest Acquisition IV in a proxy filing called an Oct. 30 meeting for shareholdes to vote on its proposed merger with CH-AUTO, an electric vehicle manufacturing and design service company based in China. The meeting is scheduled for 10:30 a.m. Eastern.
At deal announcement on April 30, 2022, the transaction reflected an initial equity value of approximately $1.25 billion.
Terms at deal announcement called 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.
The proxy filed today states that aggregate stock consideration will consist of 62,872,482 Class A shares and 30,182,930 Class B shares.
While the SPAC said it continues to pursue additional financing via a PIPE, it has yet to secure subscription agreements. Read more.
