Chinese automaker Chijet Motor to go public via merger with JWAC
Chijet Motor Company, a Chinese automaker, has signed a merger agreement with Jupiter Wellness Acquisition (JWAC), a special purpose acquisition company (SPAC), with an intention to become a publicly-listed company with a listing on NASDAQ.
The merger is expected to increase the production capacity of Chijet Motor Company, research and development of new products, working capital, as well as in advancing its electric vehicle (EV) business and sales of gasoline vehicles in China and Southeast Asia.
The agreement values Chijet Motor Company and its controlling stakes in Chinese EV manufacturer Shandong Baoya New Energy Vehicle and Chinese traditional fuel vehicles manufacturer FAW Jilin at $1.6 billion.
On the completion of the transaction, Chijet Motor Company is expected to get proceeds of approximately $140.2 million, assuming there are no redemptions by Jupiter Wellness Acquisition public shareholders.
The Chinese automobile company expects to use the proceeds to fund the two under-construction manufacturing plants with a total area of 8.47 million square feet with an annual production capacity of 200,000 vehicles in Xiangyang and Yantai in China.
Chijet Motor Company will also use the proceeds to fund the development and manufacturing of its planned next-generation electric vehicle, apart from general company operating purposes.
Brian John — Jupiter Wellness Acquisition CEO said: “We are delighted to have entered into a definitive agreement with Chijet. Chijet designs, manufactures, markets and services a full line of cars, mini-trucks, sport utility vehicles and electric vehicles.
“As a major player in this field, and with its relationship with one of China’s leading automakers FAW Group, we believe Chijet will continue to expand its market position as the electric vehicle industry expands. JWAC and our investors thought it was important for JWAC to merge with a rapidly growing Company with the potential for big revenue and earnings growth during these down market times, and we believe we will accomplish that with the Chijet merger.”
Currently, Chijet Motor Company intends to sell vehicles to over 300 dealerships in China and other parts of Southeast Asia. The company produces a range of models through FAW Jilin Automobile, which include three SUV models under the Senya brand and four light truck models under the Jiabao brand.
Mu Hongwei — Chijet Motor Company chairman said: “We are focused on our vision to develop and produce electric vehicles with the latest energy-saving technologies, which has never been more important than today given the soaring cost of oil.
“Our management team is committed to delivering on our plans to expand our electric vehicle business and leverage our existing dealer network, our manufacturing permits and licenses, and supply chain and production capabilities.”
Expected to close by the end of the first quarter of 2023, the transaction is subject to certain closing conditions.