Yet another special purpose acquisition company deal is charging up on Wall Street. This time, electric vehicle battery firm Microvast is looking to come public. And as rumor has it, Tuscan Holdings (NASDAQ:THCB) is the lucky SPAC. So what do you need to know about the Microvast SPAC merger?
To start, Microvast focuses on making batteries for electric vehicles. This means the Microvast SPAC merger is already incredibly interesting, especially as investors have focused heavily on electric car stocks in 2020.
With all of this in mind, here are 13 things you need to know about the Microvast SPAC merger.
- Microvast calls Texas its home, and has been around since 2006.
- The company considers itself a leader in developing ultra-fast and long-lasting battery power systems for electric vehicles.
- Additionally, Microvast intends to electrify city transit through gradually introducing battery systems to buses, taxis, passenger vehicles and by rolling out charging networks.
- Unlike other companies involved in SPAC deals, Microvast has developed an existing product.
- In fact, electric buses during the 2018 Olympic Games in South Korea featured Microvast batteries.
- Beyond the Olympics, electric buses in Shanghai and Auckland use its EV batteries.
- Other big news came in 2020. According to Microvast, it received a prestigious award from the U.S. Advanced Battery Consortium.
- This award provides funding to produce low-cost electric vehicle batteries.
- Tuscan Holdings launched its initial public offering last year, and raised $276 million.
- Initially, Tuscan planned to bring a cannabis company public.
- However, it has switched to the electric vehicle space, following a trend that emerged over the summer with the likes of XL Fleet, Canoo and Lordstown Motors (NASDAQ:RIDE).
- Together, the combined companies will have a valuation of $2 billion.
- It is not clear when Microvast plans for the deal to close, or what its new symbol will be.
Why the Microvast SPAC Merger Matters
Importantly, the last few weeks have brought a rush of new interest to the SPAC space. Even more importantly, this has been especially true with electric vehicle and battery companies. Just last week, automaker Arrival announced its plans to come public via a special purpose acquisition company. Since then, it has been trending higher.
It is clear that there is a growing appetite for this time of offering. Investors want new electric car stocks, and they want them now. Bypassing the traditional IPO process allows investors to gain access to earlier stage, red-hot companies. However, it is also important to note that Microvast does have existing business. It has already delivered its batteries for a variety of uses, and it will bring in about $100 million in revenue this year. This sets it apart from some of the other SPAC deals we have seen in 2020.
Regardless, as you eye the SPAC space, the Microvast SPAC merger promises to be hot. Stay plugged in to the news here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.