Lutes received a financing commitment of about $750 million, with a pre-investment valuation of $5.5 billion

CTOnews.com, November 28, Lutes Technology announced that on the eve of completing its merger with its L Catterton Asia Acquisition Corp business as planned, it had signed financing commitment agreements totaling approximately $870 million (CTOnews.com Note: about RMB 6.229 billion) through public equity private equity (PIPE) and convertible bonds this year, all of which were signed in accordance with a pre-investment valuation of $5.5 billion.

LCAA is part of L Catterton, a consumer goods private equity firm. After Lutes Technology announced financing of about $120 million on April 28, 2023, the company recently received about $750 million in financing commitments.

Lutes said investors would receive public shares upon completion of the merger with LCAA, which would increase Lotus Technology's outstanding shares to more than 19 per cent (excluding existing LCAA shareholders).

The statement also shows that the funds will be used to further promote "the development of next-generation automotive technology, promote product innovation, and support the company's expansion of its global distribution network, as well as general corporate uses."

Lutes Technology said in January that it would go public in the United States through a merger with LCAA, a special purpose acquisition company (SPAC), a special purpose acquisition company (SPAC) formed by an affiliate of L Catterton, an investment firm backed by luxury empire LVMH LVMH.

It is worth mentioning that Lutes Technology is a subsidiary of the British sports car brand Lutes, which is jointly owned by Geely of China and Etika Automotive of Malaysia.