Tuscan Holdings Corp (NASDAQ: THCB) shares are trading higher premarket on Monday after announcing that battery maker Microvast Inc will go public in a SPAC merger with the company.
The transaction values the combined company at $3 billion with a $10 per share PIPE subscription price. The companies will receive up to $822 million in cash once the deal is closed, which includes an investment of $540 million from Oshkosh Corp, BlackRock Inc, Koch Strategic Platforms, and InterPrivate and $282 million in cash held in trust by Tuscan.
Tuscan, a special purpose acquisition company, raised $276 million in March 2019 and is led by CEO, Stephen Vogel.
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Microvast was founded in Houston, Texas in 2006 and develops batteries for commercial vehicles such as taxis and buses and special transportation such as mining trucks and port equipment, with development and production capabilities that span battery materials, multiple battery cell chemistries, modules and packs.
In 2020 the company was awarded a contract by US Advanced Battery Consortium to develop low-cost and fast charge batteries for electric-vehicle applications.
“In 2008, we set out to power a mobility revolution by building disruptive battery technologies that would allow electric vehicles to compete with internal combustion engine vehicles. Since that time we have launched three generations of battery technologies that have provided our customers with battery performance far superior to our competitors and that successfully satisfy, over many years of operation, the stringent requirements of commercial vehicle operators,” said Microvast founder and CEO, Yang Wu.
The combined company will trade on the Nasdaq, under the ticker symbol MVST. Tuscan Holdings stock price is trading at $24.23 premarket up 54.73%.