Lotus Technology, the luxury electric vehicle subsidiary of British sports car maker Lotus Group, is set to commence trading its American Depositary Shares (ADSs) on the Nasdaq on Friday. This move comes as the company nears the finalization of its merger with Special Purpose Acquisition Company (SPAC) L Catterton Asia Acquisition Corp (LCAA).
The business combination, expected to close on February 22, will see the combined entity retaining the name “Lotus Technology Inc,” according to a statement released yesterday. Lotus Technology’s ADSs will trade under the symbol “LOT.”
See also:Â Lotus Confirms Apple Car Key Compatibility for New Emeya Electric Vehicles
Lotus Group, which is jointly owned by Chinese automaker Geely Holding and Malaysia’s Etika Automotive, acquired Lotus in 2017. Geely holds a 51 percent stake in Lotus, encompassing both Lotus Cars and Lotus Engineering, with the remainder owned by Etika.
In a bid to expand its presence, Lotus Technology established Wuhan Lotus Technology in China at the end of August 2021, with investment from Nio Capital.
The merger agreement between Lotus Technology and LCAA, announced on January 31, 2023, values the combined entity at $5.5 billion on a pre-money equity basis. Since the announcement, Lotus Technology has secured over $880 million in pre-closing and private investment in public equity financing commitments from various global investors, existing shareholders, and strategic partners.
See also:Â Lotus Confirms Nasdaq Listing Plans for $5.4 Billion EV Arm Despite Industry Headwinds
Lotus Technology aims to introduce two all-electric models over the next two years and intends to be the first traditional luxury car brand to achieve a 100 percent electric portfolio by 2027. The company has already launched two luxury electric vehicles, the Eletre and Emeya.
Despite reporting revenues of $3.69 million in 2021 and $9.56 million in 2022, Lotus Technology also incurred significant losses, with a net loss of $110 million in 2021 and $720 million in 2022. The company reported a net loss of $350 million in the first half of 2023, compared to $200 million in the same period in 2022.
