Luxury electric vehicle subsidiary Lotus Technology, under the umbrella of sports car brand Lotus, announced on Tuesday the successful acquisition of $870 million in financing. This financial boost precedes the finalization of its merger with blank-check company L Catterton Asia Acquisition (LCAA).
According to a statement from Lotus Technology, the financing was secured based on a valuation of $5.5 billion. As part of the merger deal with LCAA, investors will receive public shares, resulting in Lotus Technology having a free float exceeding 19%, excluding current LCAA shareholders.
The substantial funds obtained will be allocated towards advancing the development of next-generation automobility technologies, fostering product innovation, expanding the global distribution network, and covering general corporate needs, as outlined in the statement.
Lotus Technology's decision to go public in the United States was unveiled in January, with the merger facilitated by LCAA, a special purpose acquisition company (SPAC) formed by affiliates of L Catterton, an investment firm associated with luxury goods conglomerate LVMH Louis Vuitton Moet Hennessy.
Lotus Technology operates under the ownership of British sports car manufacturer Lotus Group, jointly held by Chinese automaker Geely and Malaysia's Etika Automotive. The infusion of capital marks a significant step for Lotus Technology as it gears up for enhanced innovation and global expansion.