The sports car manufacturer Lotus’ luxury electric vehicle division, Lotus Technology, announced on Tuesday that it has raised $870 million in funding in advance of its merger with L Catterton Asia Acquisition (LCAA), a blank cheque company.
The $5.5 billion valuation served as the basis for all of the funding, according to a statement from Lotus Technology, a Chinese company.
After the business combination with LCAA closes, investors will receive public shares, which will give Lotus Technology a free float of more than 19%, excluding current LCAA shareholders, the company stated.
“Next-generation automobility technologies, promote product innovation, support the company’s expansion of its global distribution network, and for general corporate purposes” are the stated uses of the funds.
With the merger of LCAA, a special purpose acquisition company (SPAC) established by affiliates of L Catterton, an investment firm supported by the luxury goods conglomerate LVMH Louis Vuitton Moet Hennessy, Lotus Technology announced in January that it would go public in the US.
Lotus Technology is a division of the British sports car manufacturer Lotus Group, which is owned by Malaysia’s Etika Automotive and Chinese automaker Geely jointly.
As a pioneer in the electrification of high-end automobiles, Lotus Tech is well-positioned to benefit from the industry’s explosive expansion as we address unmet consumer demands. Global investors’ confidence in Lotus Tech’s performance and growth potential is demonstrated by the US$870 million in funding commitments we have received this year. As Lotus Tech moves closer to finalising the planned business combination with LCAA, we are grateful for our investors’ and strategic partners’ excitement about quickening our progress’, stated Mr. Qingfeng Feng, CEO of Lotus Tech.
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