Black Spade Acquisition Corp, the special purpose acquisition company (SPAC) that will merge with Vietnamese EV maker VinFast, said it will transfer its listing from the New York Stock Exchange (NYSE) to NYSE American, according to its regulatory filing.
NYSE American, an exchange designed for growing companies, is understood to have lower listing requirements compared to NYSE.
The SPAC is scheduled to begin trading on NYSE American on June 21, 2023, the company said.
“The decision to transfer to the NYSE American was motivated by several factors, including more favorable thresholds for continued listing on the NYSE American following potential redemptions of the company’s Class A ordinary shares in connection with the vote to extend the deadline by which the company must complete its initial business combination,” Black Spade said in the filing.
Earlier on June 14, Black Spade and VinFast announced that they have included NYSE American as a qualified stock exchange in addition to NYSE and Nasdaq. VinFast added that it expected to finish the business combination by July 20, 2023.
VinFast announced the proposed merger with Black Spade in May in a deal that would value the combination at $23 billion. The Vietnamese automaker had initially planned a direct listing on Nasdaq.
Two years ago, Black Spade raised $150 million in its initial public offering on NYSE.
VinFast reported a higher loss in Q1 2023 ($598.3 million) compared to the same period in 2022 ($410.5 million), according to its latest filing with the US Securities and Exchange Commission. Its total loss last year stood at over $2.1 billion, compared to around $1.37 billion a year earlier.
Established in 2017 by Vietnamese juggernaut Vingroup to produce combustion engine cars in the country, VinFast morphed into an EV-only company in 2022. Since then, the firm has started to shift its focus on overseas markets.
“VinFast’s ability to achieve profitability, positive cash flows from operating activities and a net working capital surplus will depend on many factors, including its ability to achieve commercial acceptance, increase utilisation of its production capacity to produce EVs in large quantities as planned and increase sales of its EVs in its target markets beyond Vietnam,” VinFast said in its filing.