China’s Bestpath IPO via $1.2 billion SPAC deal in US

Chinese tech giant BestPath said Monday it had agreed to go public in the U.S. by merging with Blank Check Automotive in a deal worth about $1.2 billion in assets.

Founded in 2019, Bestpath is a hydrogen fuel cell vehicle manufacturer with a Shanghai-based R&D facility to drive the development of these vehicles.

BestPath’s existing shareholders will retain a majority of the outstanding shares of the combined company, and the proceeds from the transaction are expected to be used for working capital and general corporate purposes.

Special purpose acquisition companies (SPACs), which peaked on Wall Street in 2020 and early 2021, now face regulatory hurdles and investor distrust amid volatile capital markets and poor stock performance of popular companies.

After the deal is completed, the combined company “Bestpath Group Limited” expects to start trading on the Nasdaq Exchange.

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