TMT Acquisition and eLong Power Holding Limited announced a definitive business combination agreement at a $450 million equity valuation.
Huizhou Yipeng Energy Technology is the operating entity of eLong Power. Upon closing of the merger, the combined company is expected to be listed on the Nasdaq. The deal is expected to close in the first half of 2024.
The target is a provider of high power battery technologies for commercial and specialty vehicles and energy storage systems.
Terms call for a subsidiary of TMTC to be merged with and into eLong Power, the result of which eLong Power will become a wholly-owned subsidiary of TMTC, with the newly combined publicly traded company to be named eLong Power. All shares of eLong Power would be converted into ordinary shares of the newly combined entity. As a result, upon closing, eLong Power’s shareholders would receive 45 million ordinary shares of the new eLong Power Inc., which, at an implied value of $10 per share, would represent $450 million in equity. In addition, eLong Power’s majority shareholder is entitled to receive up to 9 million shares of the combined company upon the achievement of certain revenue-based milestones during calendar years 2024 and 2025.
At closing, any cash remaining in TMTC’s trust account will be contributed to eLong Power to support ongoing operations and planned business expansion efforts. References to available cash from the TMTC trust account and retained transaction proceeds are subject to any redemption by the public shareholders of TMTC ordinary shares and payment of transaction fees and expenses. Read more.
