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Summary
- Battery manufacturer Microvast Inc is reportedly set to go public via reverse merger with Tuscan Holdings Corp.
- Speculation around a possible merger between the two companies emerged in December last year, sending Tuscan’s stocks to record levels.
- While there has been no official confirmation yet, the two companies are expected to announce the deal on Monday, February 1.
Electric vehicle battery manufacturer Microvast Inc is reportedly set to go public via reverse merger with blank check company Tuscan Holdings Corp (NASDAQ:THCB, THCB:US). While there has been no official confirmation yet, the two companies are expected to announce the deal on Monday, February 1.
Speculation around a possible merger between the two companies emerged in December last year, sending stocks of the special public acquisition company (SPAC) to record levels. Tuscan Holdings stocks even reached an all-time high on December 28, closing at US$ 18.97, around the rumors of a definitive merger agreement (DA) signing.
Let’s find out more about the possible merger between Microvast and Tuscan Holdings.
Microvast-SPAC Tuscan Merger: What We Know
Microvast and Tuscan are expected to have signed a Letter of Intent (LOI) to merge, but the companies are yet to confirm the same.
The transaction between the two will bring the valuation of the combined company to about US$ 3 billion, said reports quoting sources close to the matter.
Microvast, founded in Texas in 2006, focuses in the manufacture of batteries for electric vehicles in the commercial as well as specialty transportation industries. As per the company’s website, it had received a private investment of US$ 400 million from Chinese firm CITIC Securities in 2017.
©Kalkine Group 2021
The two companies are reportedly set to receive some US$ 800 million in cash once the deal goes through. This amount will include funding worth US$ 540 million from industrial company Oshkosh Corp, investment firm BlackRock Inc, etc. SPAC Tuscan Holdings previous raised a capital of about US$ 276 million in March 2019.
Tuscan Holdings, which went public in 2019, said in its listing documents that it would prefer to form business combinations with enterprises in the cannabis industry, though it may ultimately pursue a merger in any sector.
If the two companies publicly confirm and follow through with this merger, Microvast will be joining a long slew of North American companies going public with the help of a SPAC recently.
