NEW YORK, N.Y. and Ganzhou, China, Dec. 04, 2023 (GLOBE NEWSWIRE) — TMT Acquisition Corp (NASDAQ: TMTCU), a publicly traded special purpose acquisition company (SPAC), and eLong Power Holding Limited, a provider of high power battery technologies for commercial and specialty vehicles and energy storage systems, today announced that they have entered into a definitive business combination agreement, dated December 1, 2023, that will result in eLong Power becoming a publicly traded company. Huizhou Yipeng Energy Technology Co., Ltd. (“Yipeng Huizhou”, together with eLong Power, the “Company”) is the operating entity of eLong Power. Upon the closing of the transaction, the combined company is expected to be named eLong Power Inc. and its securities are expected to be listed on the Nasdaq Stock Exchange. The transaction has been approved by the Board of Directors of both companies and is expected to close in the first half of 2024.
ELONG POWER OVERVIEW
The Company, founded in 2014, develops disruptive battery technologies for commercial and specialty vehicles as well as energy storage systems, with research and development and production capabilities that span multiple battery cell chemistries, modules and packs. The Company’s lower-cost, high power and fast-charging batteries are designed specifically for commercial electric vehicles (“EVs”) and large-scale energy storage systems.
The Company’s battery solutions are powered by its broad, proprietary intellectual property portfolio, which is fully owned and protected by numerous patents and other intellectual properties. Due to its highly differentiated, vertically integrated R&D and industrialization system, the Company believes it delivers faster product development, tighter cost control and greater customization to its customers than does its competitors. As a result, the Company is supported by marquee strategic partnerships with industry leaders.
TMTC believes that market opportunities for eLong Power are significant, with two primary focuses: 1) commercial vehicles such as light, medium and heavy-duty trucks, vans, buses, automated guided vehicles, and mining trucks; and 2) large-scale energy storage systems for municipal and industrial applications. Given its unique focus on battery solutions for commercial EVs and energy storage, eLong Power believes it is poised to capitalize on a large and rapidly growing global commercial EV market that is projected to grow from US$11.3 billion in 2023 to approximately US$54.3 in 2030, representing a CAGR of 29.9%.1 Battery energy storage is also a fast-growing industry and eLong Power is focusing on becoming a leading player in China in the short term and globally longer term. The energy storage market, including Behind the Meter (“BTM”) and commercial and industrial (“C&I”), has surpassed US$93.9 billion in 2022 and is anticipated to grow at CAGR of 18.9% from 2023 to 2032, in which annual sales are projected to exceed US$0.5 trillion2. This fast-growing trend is underpinned by several industry and policy tailwinds, namely: i) the growing adoption of green energy such as wind, solar, and hydropower, which created significant opportunities for companies like eLong Power; ii) the decrease in the cost of renewable energy; and iii) favorable national and local mandates, policies and incentives in the People’s Republic of China.
The business combination transaction with TMTC is expected to provide the Company with access to the U.S. public equity markets and thereby accelerate its business expansion and position the Company to explore additional growth and value creating opportunities.
TMTC and ELONG POWER COMMENTS
Commenting on the signing of the definitive agreement, eLong Power’s Chairwoman and CEO, Xiaodan Liu, said, “In 2014, the Company set out to power a mobility revolution for commercial and industrial EVs by building disruptive battery technologies. Since then, we have launched a series of generations of battery technologies that have provided our customers with improved battery performance meeting the stringent requirements of commercial vehicle operators. This transaction marks the beginning of our next chapter working with our marquee customers and strategic partners to pave the way for the mass adoption of commercial electric vehicles and energy storage solutions, and we are thrilled to team up with TMTC’s team to advance the path to electrification.”
DJ Guo, Chairman and CEO of TMTC said, “The eLong Power team has not only developed cutting-edge battery technology that is highly attractive to its suite of market-leading customers and partners, but also operates a vertically integrated production process for its battery solutions that is unique in the industry, enabling both enhanced customer service and the opportunity to grow its business globally.”
THE PROPOSED BUSINESS COMBINATION
Pursuant to the proposed business combination agreement, a subsidiary of TMTC will be merged with and into eLong Power, the result of which eLong Power will become a wholly-owned subsidiary of TMTC, with the newly combined publicly traded company to be named eLong Power Inc. In the transaction, all shares of eLong Power would be converted into ordinary shares of the newly combined entity. As a result, upon closing, eLong Power’s shareholders would receive 45,000,000 ordinary shares of the new eLong Power Inc., which, at an implied value of $10.00 per share, would represent $450 million in equity. In addition, eLong Power’s majority shareholder is entitled to receive up to 9,000,000 ordinary shares of the combined company upon the achievement of certain revenue-based milestones during calendar years 2024 and 2025.
At closing, any cash remaining in TMTC’s trust account will be contributed to eLong Power to support ongoing operations and planned business expansion efforts. References to available cash from the TMTC trust account and retained transaction proceeds are subject to any redemption by the public shareholders of TMTC ordinary shares and payment of transaction fees and expenses.
TMTC and eLong Power have agreed to work together to pursue commitments for a private placement of equity financings of up to $15 million.
The transaction, which has been unanimously approved by both Boards of Directors of eLong Power and TMTC, is subject to approval by the shareholders of TMTC and other customary closing conditions. The proposed business combination is expected to be completed in the first half of 2024.
A more detailed description of the transaction terms and a copy of the business combination agreement will be included in a Current Report on Form 8-K to be filed by TMTC with the United States Securities and Exchange Commission (“SEC”). In connection with the transaction, TMTC intends to file a registration statement (which will contain a proxy statement/prospectus) with the SEC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
ADVISORS
The Crone Law Group P.C. is acting as U.S. legal advisor to TMTC. Ogier is acting as Cayman Island legal advisor to TMTC. Graubard Miller is acting as U.S. legal advisor to eLong Power, Harneys is acting as Cayman Island legal advisor to eLong Power and Han Kun Law Offices is acting as China legal advisor to eLong Power. Ever Talent Consultants Limited is acting as exclusive financial advisor to TMTC.
About eLong Power
eLong Power Holding Limited, a Cayman Islands exempted company, is a provider of high power battery technologies for commercial and specialty vehicles and energy storage systems, with research and development and production capabilities that span multiple battery cell chemistries, modules and packs. The Company is led by Ms. Xiaodan Liu, eLong Power’s Chairwoman and CEO.
About TMT Acquisition Corp
TMT Acquisition Corp is a blank check company, also commonly referred to as a special purpose acquisition company (SPAC) formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. TMTC is led by Dajiang Guo, Chairman and Chief Executive Officer, and Jichuan Yang, Chief Financial Officer, who are growth-oriented executives with a long track record of value creation across industries.
