US-based battery technology provider Microvast completed a reverse merger on Monday backed by $540m private investment in public equity (PIPE) financing from investors including chemical group Koch Industries and truck maker Oshkosh.
The company is merging with Tuscan Holdings Corp, a special purpose acquisition company that floated on the Nasdaq Capital Market in a $150m initial public offering in July 2019.
The PIPE featured Koch subsidiary Koch Strategic Platforms, Oshkosh, InterPrivate Investment Partners and funds and accounts managed by BlackRock. The deal gives the merged business an implied equity valuation of $3bn.
Founded in 2006, Microvast is conducting research, development and production of battery storage systems for electric vehicles and hybrid bus fleets, and has built three lines of fast-charging lithium-ion battery products.
The company secured $400m in a 2017 round led by brokerage Citic Securities at a $2bn valuation. It had previously closed a $50m round in 2011 from unspecified investors.
CDH Investments, National Venture Capital Association, IFCI Venture Capital Funds and SDIC Fund Management are among the company’s backers.
Microvast founder, president and CEO Yang Wu will continue to lead the merged company. He said: “As a public company, we are poised to leverage our increased financial resources to develop and deploy our battery solutions in partnership with a suite of market-leading customers across the world.”
