Lotus Tech and L Catterton Asia Acquisition Corp Announce Closing of Business Combination
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Insights
The commencement of trading for Lotus Technology Inc.'s American Depositary Shares (ADS) on the Nasdaq marks a significant milestone for the company and its investors. The move to a major U.S. exchange typically provides enhanced liquidity and a broader investor base, which can lead to increased share value. Additionally, the successful raising of over US$880 million in pre-closing and PIPE financing is notable, as it underscores strong investor confidence in Lotus Tech's business model and growth prospects.
The strategic focus on developing a 100% electric product portfolio by 2027 positions Lotus Tech at the forefront of the luxury electric vehicle market. This early transition could provide a competitive advantage as consumer preferences shift towards sustainable and environmentally friendly vehicles. Moreover, the launch of high-performing battery electric vehicles (BEVs) like Eletre and Emeya ahead of other luxury automakers could capture early market share and establish brand leadership in the electric hyper-SUV and hyper-GT segments.
Lotus Tech's business combination with L Catterton Asia Acquisition Corp and subsequent listing on the Nasdaq represent a strategic move that could impact the company's valuation. The additional financing raised is indicative of the market's optimism about Lotus Tech's growth trajectory. However, it is essential to monitor how the company utilizes these funds to scale operations and manage the execution risks associated with its ambitious product launch pipeline.
Investors should also consider the broader market trends, as the luxury electric vehicle sector is becoming increasingly competitive with established players and new entrants alike. The company's ability to maintain technological leadership and deliver on its production promises will be critical in justifying its valuation and sustaining investor interest in the long term.
Lotus Tech's integration of sports car DNA into a new generation of premium lifestyle vehicles is a strategic differentiation in the luxury electric vehicle market. The proprietary 800-volt EPA platform underpinning their BEVs indicates a commitment to high performance and efficiency. As one of the first traditional luxury automotive brands to target a fully electric portfolio, Lotus Tech is positioning itself as a leader in the electric transformation.
However, the success of this strategy will depend on the company's ability to deliver on its technological promises and to effectively manage the supply chain and production challenges that are common in the EV industry. The reception of models Eletre and Emeya in the market and the execution of the next model launches will be critical in maintaining momentum and industry standing.
Lotus Tech's American Depositary Shares to Begin Trading on the Nasdaq on February 23, 2024 under Ticker Symbol "LOT"
Integrating Lotus's sports car DNA with a new generation of premium lifestyle vehicles, Lotus Tech is committed to transforming the brand into an advanced, fully electric, intelligent, and sustainable luxury mobility provider before its 80th anniversary in 2028. The Company has already set this ambitious plan in motion by launching a leading product portfolio of high-performing battery electric vehicles ("BEVs") ahead of other global luxury automakers. These BEVs include Eletre, a new breed of all-electric hyper-SUV powered by Lotus's proprietary 800-volt EPA, and Emeya, an all-electric hyper-GT among the most advanced vehicles of its kind in the world. With both BEVs already on the roads and two more fully electric models planned for launch over the next two years, Lotus Tech is on track to become the first traditional luxury automotive brand to achieve a
Since the transaction was announced, the Company has raised more than
"We are thrilled to announce our upcoming debut on the Nasdaq as we complete our business combination with LCAA," said Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech. "This is a pivotal moment in our journey. We look forward to accelerating our growth as a listed company, leading the electric transformation of the global luxury BEV market together with L Catterton."
"Our partnership with Lotus Tech has gotten stronger over time and our respect for the mission it is on has only increased," said Chinta Bhagat, Co-Chief Executive Officer of LCAA. "We are excited about the road ahead as we continue building the definitive luxury electric vehicle brand together, leveraging our global consumer insights and our strategic relationship with LVMH. Lotus Tech's upcoming debut on the Nasdaq will be a key milestone in its journey and we believe that the Company will have many more achievements to celebrate over the coming years."
Lotus Tech will ring the Nasdaq opening bell in
Advisors
Deutsche Bank acted as financial advisor, capital markets advisor and PIPE placement agent, Skadden, Arps, Slate, Meagher & Flom as international legal counsel, and Han Kun Law Offices as PRC counsel to Lotus Tech. Santander US Capital Markets LLC acted as equity capital markets advisor and financial advisor, Kirkland & Ellis as international legal counsel and Fangda Partners as PRC counsel to LCAA. Shearman & Sterling LLP acted as international legal counsel to Deutsche Bank and Santander US Capital Markets LLC.
About Lotus Technology
Lotus Technology Inc. has operations across
About L Catterton Asia Acquisition Corp
L Catterton Asia Acquisition Corp (NASDAQ: LCAA) is a blank check company incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. While it may pursue an initial target business in any industry or sector, it has focused its search on high-growth, consumer technology sectors across
About L Catterton
L Catterton is a market-leading consumer-focused investment firm, managing approximately
Forward-Looking Statements
This press release (the "Press Release") contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by LCAA and its management, and Lotus Tech and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of definitive agreements with respect to the proposed Business Combination between LCAA, Lotus Tech and the other parties thereto (the "Business Combination"); (2) the outcome of any legal proceedings that may be instituted against LCAA, the Combined Company or others following the announcement of the Business Combination and any definitive agreements with respect thereto; (3) the amount of redemption requests made by LCAA public shareholders and the inability to complete the Business Combination due to the failure to obtain approval of the shareholders of LCAA, to obtain financing to complete the Business Combination or to satisfy other conditions to closing and; (4) changes to the proposed structure of the Business Combination that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the Business Combination; (5) the ability to meet stock exchange listing standards following the consummation of the Business Combination; (6) the risk that the Business Combination disrupts current plans and operations of the Company as a result of the announcement and consummation of the Business Combination; (7) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the Combined Company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (8) costs related to the Business Combination; (9) risks associated with changes in applicable laws or regulations and Lotus Tech's international operations; (10) the possibility that Lotus Tech or the Combined Company may be adversely affected by other economic, business, and/or competitive factors; (11) Lotus Tech's estimates of expenses and profitability; (12) Lotus Tech's ability to maintain agreements or partnerships with its strategic partner Geely Holding and to develop new agreements or partnerships; (13) Lotus Tech's ability to maintain relationships with its existing suppliers and strategic partners, and source new suppliers for its critical components, and to complete building out its supply chain, while effectively managing the risks due to such relationships; (14) Lotus Tech's reliance on its partnerships with vehicle charging networks to provide charging solutions for its vehicles and its strategic partners for servicing its vehicles and their integrated software; (15) Lotus Tech's ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from lithium-ion battery cells catching fire or venting smoke; (16) delays in the design, manufacture, launch and financing of Lotus Tech's vehicles and Lotus Tech's reliance on a limited number of vehicle models to generate revenues; (17) Lotus Tech's ability to continuously and rapidly innovate, develop and market new products; (18) risks related to future market adoption of Lotus Tech's offerings; (19) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; (20) Lotus Tech's reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to Lotus Tech by its partners in order for Lotus Tech to be able to increase its vehicle production capacities; (21) risks related to Lotus Tech's distribution model; (22) the effects of competition and the high barriers to entry in the automotive industry, and the pace and depth of electric vehicle adoption generally on Lotus Tech's future business; (23) changes in regulatory requirements, governmental incentives and fuel and energy prices; (24) the impact of the global COVID-19 pandemic on LCAA, Lotus Tech, Lotus Tech's post business combination's projected results of operations, financial performance or other financial metrics, or on any of the foregoing risks; and (25) other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in LCAA's final prospectus relating to its initial public offering (File No. 333-253334) declared effective by the SEC on March 10, 2021, and other documents filed, or to be filed, with the
Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved in any specified time frame, or at all, or that any of the contemplated results of such forward-looking statements will be achieved in any specified time frame, or at all. The forward-looking statements in this Press Release represent the views of LCAA and Lotus Tech as of the date they are made. While LCAA and Lotus Tech may update these forward-looking statements in the future, LCAA and Lotus Tech specifically disclaim any obligation to do so, except to the extent required by applicable law. You should not place undue reliance on forward-looking statements.
Additional Information
In connection with the proposed Business Combination, (i) Lotus Tech has filed with the SEC a registration statement on Form F-4 (File No. 333-275001) containing a preliminary proxy statement of LCAA and a preliminary prospectus (the "Registration/Proxy Statement"), and (ii) LCAA will file a definitive proxy statement relating to the proposed Business Combination (the "Definitive Proxy Statement") and will mail the Definitive Proxy Statement and other relevant materials to its shareholders after the Registration/Proxy Statement is declared effective. The Registration/Proxy Statement contains important information about the proposed Business Combination and the other matters to be voted upon at a meeting of LCAA shareholders to be held to approve the proposed Business Combination. This Press Release does not contain all the information that should be considered concerning the proposed Business Combination and is not intended to form the basis of any investment decision or any other decision in respect of the Business Combination.
Before making any voting or other investment decisions, security holders of LCAA and other interested persons are advised to read, when available, the Registration/Proxy Statement and the amendments thereto and the Definitive Proxy Statement and other documents filed in connection with the proposed Business Combination, as these materials will contain important information about LCAA, Lotus Tech and the Business Combination. When available, the Definitive Proxy Statement and other relevant materials for the proposed Business Combination will be mailed to shareholders of LCAA as of a record date to be established for voting on the proposed Business Combination. Shareholders will also be able to obtain copies of the Registration/Proxy Statement, the Definitive Proxy Statement and other documents filed with the SEC, without charge, once available, at the SEC's website at www.sec.gov, or by directing a request to: LCAA, 8 Marina View, Asia Square Tower 1, #41-03,
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Participants in the Solicitation
LCAA and Lotus Tech, and certain of their directors and executive officers, may be deemed participants in the solicitation of proxies from LCAA's shareholders with respect to the proposed Business Combination. A list of the names of those directors and executive officers and a description of their interests in LCAA is set forth in LCAA's filings with the SEC (including LCAA's final prospectus related to its initial public offering (File No. 333-253334) declared effective by the SEC on March 10, 2021), and are available free of charge at the SEC's web site at www.sec.gov, or by directing a request to LCAA, 8 Marina View, Asia Square Tower 1, #41-03,
No Offer and Non-Solicitation
This Press Release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction and shall not constitute an offer to sell or a solicitation of an offer to buy the securities of LCAA or Lotus Tech, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act.
Contact Information
For inquiries regarding Lotus Tech
Demi Zhang
ir@group-lotus.com
Brunswick Group
Lotustechmedia@brunswickgroup.com
For inquiries regarding LCAA and/or L Catterton
Julie Hamilton (
media@lcatterton.com
+1 203 742 5185
Bob Ong / Bonnie Gan (
bob.ong@lcatterton.com / bonnie.gan@lcatterton.com
+65 6672 7619 / +86 10 8555 1807
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SOURCE Lotus Technology Inc.
FAQ
When will Lotus Tech's American Depositary Shares begin trading on the Nasdaq?
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