KM QUAD Announces Entering into a Merger Agreement with Quetta Acquisition Corporation
KM QUAD has announced a merger agreement with Quetta Acquisition (Nasdaq: QETA). The transaction will result in KM QUAD becoming a wholly-owned subsidiary of Quad Global, maintaining Nasdaq listing under a new ticker symbol. KM QUAD, through its subsidiary Lida Technology, is a Chinese manufacturer of automotive protective films founded in 2016.
The company specializes in high-performance automotive protective films and window tints, with additional product lines for construction and battery applications. QUAD possesses 113 intellectual property rights in China and maintains a distribution network covering over 200 Chinese cities. Their main manufacturing facility in Jiujiang spans 33 acres with over 21,000 square meters.
Under the merger terms, KM QUAD shareholders will receive 30 million ordinary shares of Quad Global, subject to a six-month lock-up period. The transaction requires regulatory approvals, shareholder consent from both companies, and Nasdaq listing approval.
KM QUAD ha annunciato un accordo di fusione con Quetta Acquisition (Nasdaq: QETA). La transazione porterà KM QUAD a diventare una controllata interamente posseduta da Quad Global, mantenendo la quotazione su Nasdaq con un nuovo simbolo. KM QUAD, attraverso la sua controllata Lida Technology, è un produttore cinese di pellicole protettive per automobili fondato nel 2016.
L'azienda si specializza in pellicole protettive per automobili ad alte prestazioni e tinti per vetri, con ulteriori linee di prodotti per applicazioni nel settore edile e delle batterie. QUAD possiede 113 diritti di proprietà intellettuale in Cina e mantiene una rete di distribuzione che copre oltre 200 città cinesi. La loro principale struttura di produzione a Jiujiang si estende su 33 acri con oltre 21.000 metri quadrati.
Secondo i termini della fusione, gli azionisti di KM QUAD riceveranno 30 milioni di azioni ordinarie di Quad Global, soggette a un periodo di lock-up di sei mesi. La transazione richiede approvazioni normative, il consenso degli azionisti di entrambe le aziende e l'approvazione per la quotazione su Nasdaq.
KM QUAD ha anunciado un acuerdo de fusión con Quetta Acquisition (Nasdaq: QETA). La transacción resultará en que KM QUAD se convierta en una subsidiaria de propiedad total de Quad Global, manteniendo la cotización en Nasdaq bajo un nuevo símbolo. KM QUAD, a través de su subsidiaria Lida Technology, es un fabricante chino de películas protectoras para automóviles fundado en 2016.
La empresa se especializa en películas protectoras para automóviles de alto rendimiento y tintes para ventanas, con líneas de productos adicionales para aplicaciones en construcción y baterías. QUAD posee 113 derechos de propiedad intelectual en China y mantiene una red de distribución que cubre más de 200 ciudades chinas. Su principal instalación de fabricación en Jiujiang abarca 33 acres con más de 21,000 metros cuadrados.
Según los términos de la fusión, los accionistas de KM QUAD recibirán 30 millones de acciones ordinarias de Quad Global, sujeto a un período de bloqueo de seis meses. La transacción requiere aprobaciones regulatorias, consentimiento de los accionistas de ambas empresas y aprobación para la cotización en Nasdaq.
KM QUAD는 Quetta Acquisition (Nasdaq: QETA)와 합병 계약을 발표했습니다. 이 거래로 KM QUAD는 Quad Global의 완전 자회사로 전환되며, 새로운 주식 기호로 Nasdaq 상장을 유지할 것입니다. KM QUAD는 자회사 Lida Technology를 통해 2016년에 설립된 중국의 자동차 보호 필름 제조업체입니다.
이 회사는 고성능 자동차 보호 필름과 창문 틴트에 전문화되어 있으며, 건설 및 배터리 응용 프로그램을 위한 추가 제품 라인도 보유하고 있습니다. QUAD는 중국에서 113개의 지적 재산권을 보유하고 있으며, 200개 이상의 중국 도시를 아우르는 유통 네트워크를 유지하고 있습니다. 그들의 주요 제조 시설은 Jiujiang에 위치하며, 면적은 33에이커에 21,000제곱미터 이상입니다.
합병 조건에 따라 KM QUAD 주주들은 6개월의 잠금 기간이 적용되는 Quad Global의 3천만 주의 보통주를 받게 됩니다. 이 거래는 규제 승인이 필요하며, 양사 주주의 동의와 Nasdaq 상장 승인이 필요합니다.
KM QUAD a annoncé un accord de fusion avec Quetta Acquisition (Nasdaq: QETA). La transaction entraînera la transformation de KM QUAD en filiale entièrement détenue par Quad Global, tout en maintenant la cotation sur Nasdaq sous un nouveau symbole. KM QUAD, à travers sa filiale Lida Technology, est un fabricant chinois de films protecteurs pour automobiles fondé en 2016.
L'entreprise se spécialise dans les films protecteurs pour automobiles de haute performance et les teintures pour fenêtres, avec des gammes de produits supplémentaires pour les applications dans la construction et les batteries. QUAD possède 113 droits de propriété intellectuelle en Chine et maintient un réseau de distribution couvrant plus de 200 villes chinoises. Leur principale installation de fabrication à Jiujiang s'étend sur 33 acres avec plus de 21 000 mètres carrés.
Selon les termes de la fusion, les actionnaires de KM QUAD recevront 30 millions d'actions ordinaires de Quad Global, sous réserve d'une période de blocage de six mois. La transaction nécessite des approbations réglementaires, le consentement des actionnaires des deux entreprises et l'approbation de la cotation sur Nasdaq.
KM QUAD hat eine Fusionsvereinbarung mit Quetta Acquisition (Nasdaq: QETA) bekannt gegeben. Die Transaktion wird dazu führen, dass KM QUAD eine hundertprozentige Tochtergesellschaft von Quad Global wird und die Nasdaq-Notierung unter einem neuen Tickersymbol beibehält. KM QUAD ist über ihre Tochtergesellschaft Lida Technology ein chinesischer Hersteller von Schutzfolien für Automobile, der 2016 gegründet wurde.
Das Unternehmen spezialisiert sich auf Hochleistungs-Schutzfolien für Automobile und Fensterfolien, mit zusätzlichen Produktlinien für Bau- und Batterieranwendungen. QUAD besitzt 113 geistige Eigentumsrechte in China und unterhält ein Vertriebsnetz, das über 200 chinesische Städte abdeckt. Ihre Hauptproduktionsstätte in Jiujiang erstreckt sich über 33 Acres mit mehr als 21.000 Quadratmetern.
Unter den Bedingungen der Fusion erhalten die Aktionäre von KM QUAD 30 Millionen Stammaktien von Quad Global, vorbehaltlich einer sechsmonatigen Sperrfrist. Die Transaktion erfordert regulatorische Genehmigungen, die Zustimmung der Aktionäre beider Unternehmen und die Genehmigung zur Notierung an der Nasdaq.
- Extensive intellectual property portfolio with 113 rights in China
- Large manufacturing facility spanning 33 acres with 21,000+ square meters
- Wide distribution network covering 200+ cities in China
- 40 dedicated R&D employees showing commitment to innovation
- Nasdaq listing will provide access to public markets and capital
- Six-month lock-up period for shareholders may limit stock liquidity
- Transaction subject to multiple regulatory and shareholder approvals
- Heavy geographical concentration in Chinese market
Insights
This SPAC merger represents a strategic market entry for KM QUAD, positioning it to capitalize on the growing automotive protection film market, particularly in the expanding electric vehicle sector. The company's extensive IP portfolio (113 intellectual property rights) and established manufacturing infrastructure create significant barriers to entry, while its presence in over 200 Chinese cities demonstrates strong market penetration.
The transaction structure reveals several key considerations: The 6-month lock-up period for existing shareholders indicates confidence in long-term value creation while providing some protection against immediate post-merger selling pressure. The 30 million ordinary shares issuance to KM QUAD shareholders will need careful evaluation against the company's financial metrics to assess the deal's fairness.
Critical success factors and risk elements include:
- Regulatory oversight: As a Chinese company seeking US listing, the transaction faces heightened scrutiny under current SEC regulations and US-China relations
- Market positioning: The focus on EV-specific solutions aligns with macro trends in automotive sector transformation
- Operational scale: The 33-acre manufacturing facility and dedicated R&D team (40 employees) suggest robust operational capabilities, though expansion capacity needs assessment
- Competitive advantage: The combination of decorative and functional features in their products, backed by patents and pending applications, provides differentiation in a growing market
The merger's success will largely depend on post-integration execution and the company's ability to leverage public market access for growth capital while navigating the complexities of being a Chinese company listed on NASDAQ. The extensive legal advisor lineup suggests thorough due diligence and compliance preparation, which is important for cross-border transactions of this nature.
JIUJIANG, China, Feb. 14, 2025 (GLOBE NEWSWIRE) -- KM QUAD, a Cayman Islands company (“KM QUAD” or the “Company”), the parent company of Jiujiang Lida Technology Co., Ltd., a film product design and manufacturer in China (the “ Lida Technology”), announced today that it has entered into an Agreement and Plan of Merger (the “Merger Agreement”) for a business combination with Quetta Acquisition Corporation (Nasdaq: QETA, QETAR, QETAU), a special purpose acquisition company incorporated in Delaware (“Quetta”).
Upon consummation of the transaction contemplated by the Merger Agreement, (i) Quetta will reincorporate by merging with and into Quad Global Inc., a Cayman Islands exempted company and wholly-owned subsidiary of Quetta (“Quad Global”), and (ii) concurrently with the reincorporation merger, Quad Group Inc., a Cayman Islands exempted company and wholly-owned subsidiary of Quad Global, will be merged with and into KM QUAD, resulting in KM QUAD being a wholly-owned subsidiary of Quad Global (the “Business Combination” and the transactions in connection with the Business Combination collectively, the “Transaction”). Upon the closing of the Transaction, the parties plan to remain Nasdaq-listed under a new ticker symbol.
KM QUAD Overview
Founded in 2016, Lida Technology, also known as “QUAD,” is a provider of automotive protective films with various decorative and strong functional features. QUAD specializes in the design, development, production, and sale of high-performance automotive protective films and window tints. Renowned for both their decorative and functional features, QUAD's products are designed to enhance the appearance and durability of vehicles while providing valuable protection. In addition to automotive applications, QUAD also manufactures specialized films for construction and battery use, further diversifying its product offerings.
QUAD has 113 intellectual property rights in China, including 72 registered trademarks, five trademark applications currently pending, 15 copyrights, 14 registered patents, 15 patent applications currently pending, and two domains. QUAD also has approximately 40 employees that are dedicated to research and development exclusively, and an established vast distribution network throughout China. QUAD has a well-established manufacturing capacity. Its main manufacturing facility is located in Jiujiang, Jiangxi Province, in an area which consists of 33 acres of land with over 21,000 square meters, including two production plants and one research and development center. QUAD’s distribution network spans throughout China, covering over 200 cities in China.
QUAD’s current management team will continue running the combined company after the Transaction.
Key Transaction Terms
Under the terms of the Merger Agreement, Quetta’s wholly-owned subsidiary, Quad Global, will acquire KM QUAD, resulting in Quad Global being a listed company on the Nasdaq Stock Market. At the effective time of the Transaction, KM QUAD’s shareholders and management will receive 30 million ordinary shares of Quad Global. The shares held by certain KM QUAD’s shareholders will be subject to lock-up agreements for a period of six months following the closing of the Transaction, subject to certain exceptions.
The Transaction, which has been approved by the boards of directors of both Quetta and KM QUAD, is subject to regulatory approvals, the approvals by the shareholders of Quetta and KM QUAD, respectively, and the satisfaction of certain other customary closing conditions, including, among others, a registration statement, of which the proxy statement/prospectus forms a part, being declared effective by the U.S. Securities and Exchange Commission (the “SEC”), and the approval by Nasdaq of the listing application of the combined company.
The description of the Business Combination contained herein is only a summary and is qualified in its entirety by reference to the Merger Agreement relating to the Business Combination. A more detailed description of the Transaction and a copy of the Merger Agreement will be included in a Current Report on Form 8-K to be filed by Quetta with the SEC and will be available on the SEC’s website at www.sec.gov.
Comments on KM QUAD
Mr. Qiuping Ke, Chief Executive Officer of KM QUAD, remarked: “For 20 years, QUAD has evolved alongside the automotive protective film market. Our mission, ‘Cutting-Edge Automotive Film Solutions,’ reflects our commitment to continuously developing innovative products that protect vehicles while adding unique colors and advanced functionalities. With a strong focus on research and development and robust manufacturing capabilities, we have gained extensive expertise, established a comprehensive brand matrix, and developed a nationwide distribution network. Our products address critical challenges facing the rapidly growing electric vehicle market, helping owners protect and customize their cars while effectively reducing in-car temperatures. We are thrilled to collaborate with Quetta, as we share a common vision and business approach, and we are confident their team will help us achieve our goals and drive long-term success.”
Mr. Hui Chen, Chief Executive Officer of Quetta, stated: “Our aim is to identify a company with solid product offerings, a proven track record, and good prospects for future growth. We believe that we have found these qualities in KM QUAD. We look forward to completing this transaction and working with KM QUAD’S management team to help them thrive as a public company while they continue to grow.”
Advisors
Loeb & Loeb LLP, Beijing B&D Law Firm, and Ogier Global (Cayman) Limited are serving as legal advisors to Quetta. Torres & Zheng at Law, P.C., J. Zhang and Associates, P.C., Hunan Qiyuan Law Firm, Zhong Lun Law Firm, and Harney Westwood & Riegels are serving as legal advisors to KM QUAD. Chain Stone Capital Limited is serving as financial advisor to KM QUAD.
About KM QUAD
KM QUAD’s operating subsidiary, Jiujiang Lida Technology Co. Ltd. (“Lida Technology,” also known as “QUAD”) was founded in 2016 in China, and over the years, QUAD has become one of the largest designers and manufacturers of film products applied in the automobile, construction, furniture, and battery industry nationwide. QUAD has over 100 intellectual property rights in China and 40 employees that are dedicated to research and development exclusively, and an established vast distribution network throughout China, covering over 200 cities in China.
About Quetta Acquisition Corporation
Quetta Acquisition Corporation is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.
Participants in the Solicitation
Quad Global Inc., Quetta Acquisition Corporation, and their respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of Quetta’s common stock in respect of the proposed Transaction. Information about Quetta’s directors and executive officers and their ownership of Quetta’s common stock is currently set forth in Quetta’s prospectus related to its initial public offering dated October 5, 2023, as modified or supplemented by any Form 10-K, Form 3 or Form 4 filed with the SEC since the date of such filing. Other information regarding the interests of the participants in the proxy solicitation will be included in a registration statement on Form F-4 (as may be amended from time to time) that will include a proxy statement and a registration statement/preliminary prospectus (the “Registration Statement”) pertaining to the proposed Transaction when it becomes available. These documents can be obtained free of charge from the sources indicated below.
No Offer or 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 Transaction and does not constitute an offer to sell or the solicitation of an offer to buy any securities of Quetta or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
Important Information about the Proposed Business Combination and Where to Find It
In connection with the Transaction, Quad Global will file relevant materials with the SEC, including the Registration Statement. Promptly after the Registration Statement is declared effective, the proxy statement/prospectus will be sent to all Quetta shareholders entitled to vote at the special meeting relating to the Transaction. Before making any voting decision, securities holders of Quetta are urged to read the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the Transaction as they become available because they will contain important information about the Transaction and the parties to the Transaction.
Stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus, and other documents filed or that will be filed with the SEC through Quetta through the website maintained by the SEC at www.sec.gov, or by directing a request to the contacts mentioned below.
Hui Chen
Chief Executive Officer, Chairman and President
Quetta Acquisition Corp.
Tel: +1(212) 612-1400
KM QUAD
Company Secretary
Zhenzhen Zhang
Email: qf@quadfilmus.com
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Quetta’s and KM QUAD’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Quetta’s and KM QUAD’s expectations with respect to future performance and anticipated financial impacts of the Business Combination, the satisfaction of the closing conditions to the Business Combination and the timing of the completion of the Business Combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of Quetta or KM QUAD and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement relating to the proposed Business Combination; (2) the outcome of any legal proceedings that may be instituted against Quetta or KM QUAD following the announcement of the Merger Agreement and the transactions contemplated therein; (3) the inability to complete the Business Combination, including due to failure to obtain approval of the shareholders of Quetta or other conditions to closing in the Merger Agreement; (4) delays in obtaining or the inability to obtain necessary regulatory approvals (including approval from PRC regulators) required to complete the transactions contemplated by the Merger Agreement; (5) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement or could otherwise cause the transaction to fail to close; (6) the inability to obtain or maintain the listing of the post-acquisition company’s ordinary shares on Nasdaq following the Business Combination; (7) the risk that the Business Combination disrupts current plans and operations as a result of the announcement and consummation of the Business Combination; (8) 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 and retain its key employees; (9) costs related to the Business Combination; (10) changes in applicable laws or regulations; (11) the possibility that KM QUAD or the combined company may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties to be identified in the Registration Statement filed by Quad Global (when available) relating to the Business Combination, including those under “Risk Factors” therein, and in other filings with the SEC made by Quetta and KM QUAD. Quetta and KM QUAD caution that the foregoing list of factors is not exclusive. Quetta and KM QUAD caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither Quetta nor KM QUAD undertakes or accepts any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.
FAQ
What are the key terms of the KM QUAD merger with Quetta (QETA)?
How many intellectual property rights does KM QUAD own in China?
What is KM QUAD's manufacturing capacity and location?
How extensive is KM QUAD's distribution network in China?
What approvals are needed for the QETA merger to complete?
