Lotus Technology has announced that it has secured an impressive $870 million in financing just ahead of its imminent merger with L Catterton Asia Acquisition (LCAA). This injection of funds marks a crucial step in Lotus Technology’s strategic development in the luxury electric vehicle market.
Lotus Technology, the luxury electric vehicle arm of sports car brand Lotus, announced on Tuesday November 28 that it had secured a substantial $870 million in financing. The news comes on the eve of the completion of its merger with special purpose acquisition company (SPAC) L Catterton Asia Acquisition (LCAA).
The entire financing was carried out on the basis of a global valuation of Lotus Technology to the tune of $5.5 billion, as stated in an official release from the China-based company.
According to Lotus Technology management, investors will benefit from public shares on closing of the merger with LCAA, enabling Lotus Technology to hold a free float in excess of 19%, excluding existing LCAA shareholders.
Strategic development
The resulting funds will be allocated to various strategic initiatives, including the development of “next-generation automotive mobility technologies, promoting product innovation, supporting the expansion of the company’s global distribution network, and for general corporate purposes”, according to the release.
In January, Lotus Technology had already announced its intention to go public in the US by merging with LCAA, an SPAC formed by subsidiaries of L Catterton, an investment company backed by luxury giant LVMH (Louis Vuitton Moët Hennessy).
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Featured photo : © Lotus
