Upon completion of the proposed merger, the Chinese company, which develops both traditional fuel vehicles and EVs, intends to raise additional capital to advance the expansion of its production capacity and product offering to include new models of electric vehicles
Chijet Motor to merge with Jupiter Wellness Acquisition. Credit: (Joenomias) Menno de Jong from Pixabay
Chijet Motor, a China-based automaker, has agreed to merge with special purpose acquisition company (SPAC) Jupiter Wellness Acquisition (JWAC) at an implied enterprise value of $1.6bn.
The company, which develops both traditional fuel vehicles and electric vehicles (EVs), is building a 5.15 million square foot factory in Yantai, China.
The deal with the SPAC will enable Chijet Motor to go public in the US.
The Chinese automaker expects to receive about $140.2m in proceeds through the deal, assuming no redemptions by the SPAC public shareholders.
The funds are expected to boost Chijet Motor’s new product research and development, production capacity and working capital, and expansion in Southeast Asia.
Jupiter Wellness Acquisition CEO Brian John 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.”
On completion of the proposed merger, Chijet Motor intends to raise additional capital to advance the expansion of its production capacity and product offering to include new models of EVs.
Chijet Motor chairman Mu Hongwei 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.”
Subject to Jupiter Wellness Acquisition’s stockholders’ approval and other conditions, the deal is anticipated to close by the end of Q1 2023.
In July 2022, Chijet Motor signed a similar SPAC deal with Deep Medicine Acquisition at a higher valuation of $2.55bn. However, the deal was scrapped by the blank cheque company in September 2022 following due diligence.