Scage International, a Chinese zero-emission solution provider focused on new energy commercial vehicles, is set for a public debut in the US after it agreed to merge with Finnovate Acquisition Corp, a publicly traded special purpose acquisition company (SPAC).
The combined entity, Scage Future, will be listed on the Nasdaq upon completion of the merger, according to the announcement. The transaction represents a post-combination valuation of $1 billion for Scage.
Finnovate Acquisition is a $172.5-million SPAC that was originally launched to focused on fintech companies that are domiciled in Israel. It listed on the Nasdaq in November 2021.
Scage, on the other hand, is headquartered in Nanjing, China. It has completed the design, production, and testing of several new energy commercial vehicles, including the Galaxy II truck, which is one of the earlier new energy hybrid heavy-duty trucks in the country.
Its founder and chairman, Chao Gao, has been in the automotive industry for nearly 18 years. He will continue to lead the merged company after the closing of the business combination.
“We can see the near future of new energy, intelligent heavy trucks galloping all over the world. This is not only a clean energy revolution but also a gorgeous performance of AI, and we made it a reality,” Gao said.
When the proposed merger is completed, Gao said Scage will build learn plants in various locations to expand the reach of its products to a broader audience.
The board of directors of Scage and Finnovate has already approved the business combination, but the transaction still requires the approval of the two firms’ shareholders and other customary closing conditions.
Scage now joins a number of Chinese companies that have taken the SPAC route to list in the US. In June, Chinese medical devices developer Baird Medical also agreed to go public in the US through a business combination with blank cheque firm ExcelFin Acquisition Corp.
The proposed transaction represents a pre-money equity value of $300 million for Baird Medical and an implied pro forma enterprise value of approximately $370 million for the combined company.
In July, GRD Biotechnology Acquisition, a Chinese SPAC targeting the biotech sector in Asia, filed to raise up to $40 million in a Nasdaq IPO.
SPACs, also known as blank cheque companies, raise capital via traditional IPOs for the purpose of acquiring a privately held company. A merger with the publicly traded SPAC provides a private company with a cheap and fast listing route.