Thunder Power Holdings, a manufacturer of premium electric vehicles, and Feutune Light Acquisition announced today that they have entered into a definitive business combination agreement at a $400 million enterprise value.
In addition to the $400 million in stock, 20 million shares of Feutune Light are to be set aside in escrow as earnout shares at closing. The earnout shares are to be vested and released to Thunder Power shareholders, contingent on certain performance conditions during the fiscal years ending Dec. 31 through Dec. 31, 2026.
If approved, upon completion Thunder Power expects to have up to $53 million in cash on its balance sheet (assuming no redemptions by Feutune Light’s stockholders and before payment of expenses and deferred underwriting fees). This includes existing cash brought over from Thunder Power’s balance sheet, any capital raised, and expected cash proceeds from Feutune Light’s trust account.
Thunder Power offers premium passenger EVs positioned to gain market share based on competitive design, quality, comfort, range, and price, according to a press release. The company intends to showcase the potential of its proprietary technologies through the manufacture and sale of four classes of EVs, with distribution targeted throughout the U.S., Europe, and Asia. Key characteristics include a longer driving range on a single charge, shorter charge times, and lighter weight relative to some of the company’s principal competitors, based on testing data of Thunder Power’s vehicle prototypes. The relative high efficiency of Thunder Power’s vehicles will also contribute to a lower cost of ownership, the company said.
Brown Rudnick is representing Thunder Power as U.S. legal counsel. Robinson & Cole is representing Feutune Light as U.S. legal counsel. ARC Group Limited is sole financial advisor to Thunder Power. US Tiger Securities is acting as financial advisor to Feutune Light. Read more.
