Lotus Technology, a global luxury electric vehicle maker of British sports car firm Lotus Group, which is owned jointly by Chinese automaker Geely and Malaysia’s Etika Automotive, has secured additional financing ahead of the completion of its planned business combination with L Catterton Asia Acquisition Corp (LCAA).

Lotus Technology said in a statement on Monday that the firm has signed agreements for a total of approximately $870 million of private investment in public equity (PIPE) financing and convertible notes this year.

The agreements have been entered into ahead of the anticipated completion of Lotus Tech’s planned business combination with LCAA, a special purpose acquisition company formed by affiliates of L Catterton, a leading global consumer-focused investment firm.

Subject to terms and conditions included in the various definitive financing agreements, the funds are intended to be used to further advance Lotus Tech’s development of next-generation automobility technologies, promote product innovation, support the company’s expansion of its global distribution network, and for general corporate purposes.

The company most recently received approximately $750 million of new financing commitments, subject to closing conditions stated in the relevant definitive investment documentation.

These new financing commitments add to approximately $120 million of financing commitments Lotus Tech previously announced on April 28, 2023.

All of the financing agreements were signed based on a $5.5 billion pre-money valuation, with the investors expected to be issued public shares upon closing of the planned business combination, which would result in Lotus Tech having an expected free float of over 19 percent, excluding existing LCAA shareholders.

“As a leader in the electrification of luxury vehicles, Lotus Tech is poised to leverage the segment’s rapid growth as we cater to unmet market needs,” said Qingfeng Feng, Chief Executive Officer of Lotus Tech.

“The $870 million of funding commitments we have received this year demonstrates global investors’ confidence in Lotus Tech’s performance and growth potential,

“We are thankful for our strategic collaborators’ and investors’ enthusiasm about accelerating our progress as Lotus Tech moves toward completing the planned business combination with LCAA,” he added.

As previously announced, Lotus Tech entered into an agreement and plan of merger with LCAA on January 31, 2023.

Upon completion of the transactions contemplated by the merger agreement, Lotus Tech will become a Nasdaq-listed public company.

The combined company is expected to retain Lotus Tech’s name as “Lotus Technology Inc.” and its ordinary shares are expected to be listed under the ticker symbol “LOT”.

Lotus Technology Inc., headquartered in Wuhan, China, has operations across China, the United Kingdom, and the European Union.

The company is dedicated to delivering luxury lifestyle battery electric vehicles, including sports utility vehicle (SUVs) and sedans, with a focus on world-class research and development (R&D) in next-generation automobility technologies such as electrification, digitalisation and more.

L Catterton Asia Acquisition Corp (LCAA) is a blank check company incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. While it may pursue an initial target business in any industry or sector, it has focused its search on high-growth, consumer technology sectors across Asia.

LCAA is a blank check company incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.

While it may pursue an initial target business in any industry or sector, it has focused its search on high-growth, consumer technology sectors across Asia.

L Catterton is a market-leading consumer-focused investment firm, managing approximately $34 billion of equity capital and three multi-product platforms: private equity, credit and real estate.

Leveraging deep category insight, operational excellence, and a broad network of strategic relationships, L Catterton’s team of more than 200 investment and operating professionals across 17 offices partners with management teams to drive differentiated value creation across its portfolio.

Founded in 1989, the firm has made over 250 investments in some of the world’s most iconic consumer brands.

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