Chinese electric vehicle maker Huture Ltd. plans to go public at an estimated $1 billion value through a merger with special purpose acquisition company Aquaron Acquisition Corp., both parties announced Friday. The deal, orchestrated by five law firms, marks a significant milestone for the burgeoning hydrogen fuel cell vehicle market.

Huture and Aquaron $1B SPAC Merger : Nasdaq Listing Anticipated

Shares of the combined company will trade on the Nasdaq after the deal closes later this year, according to a joint statement. This strategic move will elevate Huture Ltd $1B SPAC Merger into a notable player in the global stock market.

Legal Counsel and Deal Details

Pillsbury Winthrop Shaw Pittman LLP, Commerce & Finance Law Offices, and Ogier are representing Huture in this landmark transaction. Wilson Sonsini Goodrich & Rosati PC and Jingtian & Gongcheng are serving as legal counsel to Aquaron.

The merger values Huture at approximately $1 billion. While the parties have not disclosed the expected funding from the deal, they stated that the proceeds will be used for working capital and general corporate purposes.

Huture and Aquaron $1B SPAC Merger:  Huture's Vision and Mission

Incorporated in the Cayman Islands, Huture specializes in manufacturing hydrogen fuel cell vehicles in China. The company also focuses on research and development to support a "transition to a low-carbon and sustainable future."

"This transaction will enable us to accelerate our growth strategy, expand our market presence, and enhance our ability to deliver comprehensive solutions to customers in the hydrogen-powered vehicle market," said Huture founder and Chairman Weishan Chen. "With our core expertise in research and development, manufacturing, and sales of hydrogen-powered vehicles, we are well positioned to capitalize on the growing demand for environmentally friendly transportation solutions."

Previous Merger Termination

Before the Huture Ltd $1B SPAC Merger announcement, Aquaron terminated a prior merger with another Chinese electric vehicle maker, Shanghai-based Bestpath IoT Technology Co. Ltd. Aquaron informed the U.S. Securities and Exchange Commission that Bestpath's recent business reorganization was grounds for ending the 2023 merger agreement.

Understanding SPACs

SPACs, like Aquaron, are also known as blank-check companies. They are shell entities formed by sponsors who raise money through an initial public offering (IPO) to acquire a private business within a set timeframe. The target company inherits the SPAC's stock listing and related proceeds, offering an alternative to a traditional IPO.

Aquaron listed on the Nasdaq following a $50 million IPO in October 2022. Aquaron CEO Yi Zhou called the agreement with Huture a "tremendous step forward."

"We believe that Huture is a leader in the hydrogen fuel cell industry in China, and that they are now poised to transform the hydrogen energy ecosystem to offer the world a solution of zero emission hydrogen mobility and decarbonizing economies," Zhou said.

Merger Approval and Future Prospects

Boards of directors for both Aquaron and Huture have approved the merger. The parties confirmed that Huture shareholders will retain a majority of the outstanding shares of the combined business upon closing, and Huture will designate all proposed directors for the combined company's board.