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Tuscan Holdings Corp. confirmed that it has signed a letter of intent related to a business combination with Microvast Inc., a market leading provider of next-generation battery technologies for commercial and specialty use electric vehicles.
Founded by Yang Wu in 2006, Microvast is focused on driving mass adoption EVs and its battery technology boasts best-in-class charging speed, battery life, energy density and safety performance. The Company has been an innovative industry leader for over a decade and has clear visibility to future growth from its existing pipeline across commercial markets including e-buses, vans, trucks, passenger vehicles, automated guided vehicles, forklifts and mining trucks. Microvast is a vertically integrated battery technology company with R&D and production capabilities that span cell chemistries, materials, cells, modules and packs. In addition, Microvast has an industry leading manufacturing price point for batteries with ongoing further improvements in development.
Tuscan also announced that in connection with the intended transaction with Microvast, Ahmed Fattouh and Brian Pham of InterPrivate Capital are acting as Senior Advisors to Tuscan. Mr. Fattouh and Mr. Pham, who have prior experience in automotive technology as SPAC sponsors, will continue to advise the Tuscan team through the business combination.
"Microvast has a compelling financial profile, with significant historical revenues as well as projected growth and profitability. With its battery technology installed in over 28,000 vehicles worldwide, an impressive, growing list of global OEM customers, and a strategic partnership with Fiat Power Train Industrial, Microvast is a proven technology leader driving the mass adoption of EVs. We are excited to partner with Mr. Wu and his experienced team and believe the valuation negotiated provides long term intrinsic value to Tuscan shareholders. We look forward to supporting Microvast in its next phase of growth as a public company," said Stephen Vogel, Chairman and CEO of Tuscan.
Yang Wu, Microvast's founder, Chairman and CEO added: "Our potential transition into a public company will help continue to fuel our design and development of market-leading ultra-fast charging, long-life battery power systems. Microvast expects to generate over $100 million of revenue this financial year. With the automotive technology experience and capital this transaction with Tuscan is intended to provide, we are confident we can build upon our established success and accelerate our growth in the electric vehicle battery industry."