China's Chijet to merge with new SPAC at lower valuation than prior deal (updated)

Digital Currency X Technology

26/10/2022 14:13

(Adds background on previous deal)
       Oct 26 (Reuters) - Chijet Motor Co on Wednesday agreed
to go public in the United States through a merger with a
blank-check company that gave the China-based automaker a 37%
lesser valuation than what it had secured in another deal that
was terminated.
    The deal with special purpose acquisition company (SPAC)
Jupiter Wellness Acquisition Corp  JWAC.O  values Chijet at $1.6
billion, less than a month after Deep Medicine Acquisition Corp
 DMAQ.O  called off its $2.55 billion deal. 
    Before calling off the deal with the automaker, Deep
Medicine had twice extended the due diligence period.
    Chijet expects to receive proceeds of nearly $140.2 million,
assuming the SPAC's shareholders do not pull their money out of
the acquisition vehicle. It will be listed on the Nasdaq.
    The company develops both fuel-powered and electric vehicles
for China and other Southeast Asian markets. It will use the
capital raised through the merger to develop its EV
manufacturing capabilities.
    SPACs are firms with no business operations which merge with
a private company to take it public.
 (Reporting by Niket Nishant in Bengaluru; Editing by Sriraj
Kalluvila and Arun Koyyur)
 ((Niket.Nishant@thomsonreuters.com;))