Lotus Expertise, a division of Lotus liable for growth of electrical autos, is about to go public through a SPAC deal.

Additionally known as a reverse merger, a SPAC deal is the place a personal firm goes public by being taken over by an organization that is already listed, usually one arrange solely for this objective, identified in investor circles as a particular objective acquisition firm (SPAC). The benefit is that it avoids the complexity of the extra conventional preliminary public providing which has extra regulatory oversight.

In an announcement on Tuesday, Lotus Expertise stated it has entered right into a reverse merger with the NASDAQ-listed SPAC firm L Catterton Asia Acquisition Corp. The deal is anticipated to be accomplished on Thursday, after which the mixed firm, to be often known as Lotus Expertise Inc., will begin buying and selling on the Nasdaq underneath the ticker image “LOT.”

Lotus Expertise is predicated in Wuhan, China, and was liable for the Lotus Eletre electrical SUV and the not too long ago revealed Lotus Emeya electrical hatchback. It is also creating an electrical compact crossover.

Lotus Expertise is headed by Feng Qingfeng, who will stay CEO of the merged firm after the deal closes. Nearly all of the merged firm may even be owned by Lotus Expertise’s present shareholders which embrace Zhejiang Geely, Etika Automotive, and Nio Capital. Etika is a Malaysian provider which along with Geely are the first shareholders of Lotus Expertise’s Lotus father or mother. Nio Capital is an funding agency based by William Li, the CEO of rival EV agency Nio.

For the reason that unique announcement of the SPAC deal a 12 months in the past, greater than $880 million has been raised in pre-closing and personal funding in public fairness financing, Lotus Expertise stated. The corporate has beforehand stated it plans to make use of any raised funds for car growth and increasing the gross sales community.