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

May 2, 2022 by No Comments

  • CH-AUTO is a Chinese automotive manufacturer headquartered in Beijing, specializing in electric vehicle manufacturing, automotive design service, and automotive parts manufacturing
  • Qiantu K50, initially released in 2018, is China’s first volume-produced all-electric super sports car, improving the customer experience by utilizing lightweight materials such as aluminum and composite materials
  • Transaction implies an initial equity value of approximately $1.25 billion for CH-AUTO
  • CH-AUTO Founder and CEO Mr. Qun Lu will become CEO of the publicly traded holding entity; a Mountain Crest representative will join the Board of Directors

BEIJING and NEW YORK, May 02, 2022 (GLOBE NEWSWIRE) — CH-AUTO TECHNOLOGY CORPORATION LTD., a company formed under the laws of the Peoples Republic of China (“CH-AUTO”), an electric vehicle manufacturing and design service company based in China, and Mountain Crest Acquisition Corp. IV (Nasdaq: MCAF) (“Mountain Crest”), a Delaware corporation that was formed as a publicly-traded special purpose acquisition company, today announced they have entered into a definitive merger agreement. Upon closing of the transaction, the combined company will operate under a holding entity named CH AUTO Inc., a Cayman Islands exempted company (“Pubco”) and plans to trade on the Nasdaq Stock Market. 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.

CH-AUTO started its business of automotive design service in 2003. CH-AUTO, through its automotive design service, is proud of its contribution to increasing the process of Chinese auto industry’s annual output from 2 million to nearly 30 million vehicles during the past nearly 20 years, along with the transformation of the industry from imitation to innovation. As a design service provider to major mainstream Chinese auto brands such as Geely, Chery, FAW and GAC, CH-AUTO has led and participated in the design and development of more than 100 automobile models. CH-AUTO has also developed in-depth strategic cooperation with GFG Progetti SRL, a leading automobile design company founded by Italian design master Giorgetto Giugiaro, through a joint venture design company in Shanghai in 2019.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/21a3023e-a8b4-472e-976d-d77d7cfe6ae1

In 2015, CH-AUTO established a wholly-owned subsidiary “QIANTU MOTOR” (QT), aiming to build an electric vehicle brand for the global market. In 2018, QIANTU MOTOR’s first all-electric urban super sports car, Qiantu K50, was launched in production. Qiantu K50 is China’s first volume-produced all-electric super sports car and uses an aluminum-carbon fiber mechanical structure and a dual-motor all-wheel drive system. In addition, according to CH-AUTO’s records, the unique battery safety management system of QIANTU MOTOR has maintained a record of zero battery fire accidents. CH-AUTO expects to release its Qiantu K20 model targeting the young Gen-Z customers with an affordable price in the second half of 2022.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fa97a0e8-4201-4513-a990-30c70cc6e7d5

Mr. Lu commented, “We believe intelligent technology will change the future consumer ecosystem, and our company is collaborating with Tsinghua University Suzhou Automobile Research Institute and Cross-strait Tsinghua Research Institute to develop the next-generation vehicle intelligence system. At the same time, we expect the industrial trend of replacing traditional steel with materials such as aluminum and composite …….

Source: https://www.globenewswire.com/news-release/2022/05/02/2433696/0/en/CH-AUTO-A-Chinese-Electric-Vehicle-Manufacturing-and-Design-Service-Company-Announces-Plans-To-Become-A-Public-Company-Via-Merger-Transaction-With-Mountain-Crest-Acquisition-Corp-I.html

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