Merger MCAFU

CH-AUTO, A Chinese Electric Vehicle Manufacturing and Design Service Company, To Become A Public Company Via Merger Transaction With Mountain Crest Acquisition Corp. IV

, SPAC Research

CH-AUTO, an electric vehicle manufacturing and design service company based in China, and Mountain Crest Acquisition Corp. IV (Nasdaq: MCAF), today announced they have entered into a definitive merger agreement.

The transaction reflects an initial equity value of approximately $1.25 billion.

The transaction is expected to close in the fourth quarter of 2022 and Qun Lu, CH-AUTO’s founder and CEO, will continue to lead the holding company as its CEO after closing of the transaction.

MCAF will assume net debt outstanding of approximately $460 million, for a total purchase price of approximately $1.7 billion. The agreement provides that any additional debt will reduce the purchase price.

CH-AUTO shareholders and the pre-existing MCAF shareholders will be entitled to receive approximately 125 million shares valued at $10 per share in Pubco, subject to closing adjustments

China Bridge Capital Limited is acting as M&A advisor to CH-AUTO. Wilson Sonsini Goodrich & Rosati, JunHe, Harneys Group are serving as legal counsel to CH-AUTO. Loeb & Loeb is serving as legal counsel to MCAF.

Upon closing, the combined company will operate under a holding entity named CH AUTO Inc., and plans to trade on the NASDAQ Stock Market.

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