Rohit YadavIn the run-up to its merger with Microvast, Tuscan Holdings Corp. (THCB) is outperforming the larger SPAC market.
Tuscan Holdings Corp.
Tuscan Holdings Corp. is a firm that specialises in acquisitions. Through a merger, capital stock exchange, asset acquisition, stock purchase, and restructuring, the Company hopes to acquire one or more firms and assets. The firm was established on November 5, 2018 and is based in New York, New York.
Stephen Vogel, Chairman and Chief Executive Officer, leads Tuscan’s executive team. Tuscan’s stock is traded on the NASDAQ under the symbol “THCB.” It has a $515.73 million market capitalisation.
Microvast
Microvast, Inc. is a technological company that creates lithium-ion battery solutions and designs, develops, and produces them. Microvast, which was founded in 2006 and is based in Houston, Texas, is known for its cutting-edge cell technology and vertical integration capabilities that span from basic battery chemistry (cathode, anode, electrolyte, and separator) through battery packs. Microvast has created a family of products that span a wide range of market applications by unifying the process from raw material to system assembly.
The Merger
Microvast is projected to receive $822 million in gross profits from the announced corporate combination. Strategic partner Oshkosh Corporation, as well as funds and accounts administered by BlackRock, Koch Strategic Platforms, and InterPrivate, are among the PIPE anchor investors. The merged firm will be known as Microvast Holdings, Inc. and will be listed on the Nasdaq Stock Market under the new ticker code “MVST” after the business combination is completed.
THCB SPAC public shareholders and founders will control 12 percent of Microvast when the acquisition complete, while PIPE (private investment in public equity) investors will own 18 percent. The shares of the combined business will be traded on the Nasdaq under the ticker code “MVST.”
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When will the merger happen?
THCB and Microvast have yet to set a precise deadline for the completion of their merger. The firms said they expect the merger to conclude in the second quarter of 2021 when they announced their business combination on Feb. 1.
Stocks today
The stock of Tuscan Holdings (THCB) was trading at $14.54 on Friday, July 2, up $1.18 or 8.83 percent from its previous close of $13.36. The stock traded in a range of $13.53 to $14.64. A total of 561,344 shares have changed hands, compared to an average of 789,825 shares.
Are Tuscan investors shorting it?
In May, there was a decrease in short interest in Tuscan. Short interest totaled 2,240,000 shares as on May 28th, down 14.2 percent from the previous day’s total of 2,610,000 shares. The days-to-cover ratio is now 2.0 days, based on an average daily trading volume of 1,100,000 shares. Approximately 8.0 percent of the company’s stock is traded short.
What do Analysts Say?
In 2020, Microvast is expected to produce $101 million in sales. In 2021, the firm anticipates sales to increase by 126 percent year over year to $230 million.
Microvast forecasts its sales to rise 87 percent compounded yearly between 2020 and 2025, to $2.3 billion in 2025, and its adjusted EBITDA margin to increase from 5percent in 2021 to 20percent in 2025. According to Microvast, the commercial EV industry may be worth $30 billion by 2025.
The electric battery storage business Microvast is worth a lot more than its current price. Analysts estimate that it is worth between $20.92 and $39.39 per share, with a midpoint of $30.15 per share.
THCB stock is expected to continue to rise, especially as the reverse merger approaches.