Great Wall Huaguan Automobile, the parent company of Qiantu Motor, announced on Monday that it has signed a formal merger agreement with Mountain Crest Acquisition Corp., a special purpose acquisition company (SPAC). Qiantu Motor is expected to make its debut in the U.S. by the end of December this year, with a valuation of $1.25 billion.
Great Wall Huaguan will leverage the capital markets to stably and quickly apply the innovative technologies it has been working on for a long time to its newer models in an effort to bring users an intelligent, more personalized and unique experience.
Founded in 2003, Great Wall Huaguan Automobile originally focused on automobile design. It founded a wholly-owned brand, Qiantu Motor, and was listed on the National Equities Exchange and Quotations (NEEQ) in 2015 but withdrew its listing in April 2019. According to some industry analysts, the company needed to withdraw from the exchange since “The manufacturing of a vehicle is capital intensive. The low transaction volume of the NEEQ could not meet the demand for capital for Qiantu Motor.”
After entering the automobile industry, Qiantu Motor launched the Qiantu K50 model in August 2018, which was positioned as a pure electric sports car with a price tag as high as 686,800 yuan. Due to Great Wall Huaguan Automobile’s delisting, Qiantu Motor had to stop production after selling about 100 vehicles.
However, as stagnated as Qiantu Motor is, the company has not given up. Lu Qun, chairman of Qiantu Motor, said that its parent company had been looking for a new financing platform after its delisting and that the main body to be listed in the future had not been was not determined just yet.
In February this year, Qiantu Motor reached an agreement with Diyar Alwatan Trading & Cont. Co., a Saudi Arabian company, and China Bridge Capital. The three parties will jointly promote the market development, research and sales of Qiantu Motor in Saudi Arabia.
According to the agreement, Qiantu Motor will deliver the first batch of its Qiantu K50 to Saudi Arabia within the next few months. The company is also laying out a detailed overseas plan and intends to reveal it soon.
In addition, Qiantu Motor on Tuesday announced its car-making mode through an online conference. It will apply new non-steel materials to its vehicles to implement scale personalized customization at scale.