On Tuesday, TMT Acquisition Corp. (NASDAQ: TMTC) saw a significant surge in its stock price following the announcement of shareholder approval for its proposed business combination. During the extended trading session, TMTC shares soared by 76.74%, closing at $16.79 per share.
Business Combination with eLong Power
At an extraordinary general meeting held on October 29, 2024, TMT Acquisition (TMTC) informed shareholders that the previously disclosed business combination with eLong Power Holding Limited had been formally approved.
eLong Power specializes in high-power battery technologies for commercial vehicles and energy storage systems, making the merger an exciting prospect for both companies. The Boards of Directors for both TMTC and eLong Power unanimously endorsed the transaction. The deal remains subject to several contractual and customary closing conditions, with the finalization expected in the coming weeks.
New Public Company to Trade Under “ELPW”
eLong Power will become a fully-owned subsidiary of TMTC as a consequence of the business combination. The newly combined business is anticipated to go public on the Nasdaq Stock Market with the ticker code “ELPW” and be known as eLong Power Inc. Under the merger agreement, a subsidiary of TMTC will merge into eLong Power, effectively consolidating both entities under the same corporate umbrella.
Shareholder Considerations and Equity Distribution
Upon the transaction’s closure, all shares of eLong Power will be converted into ordinary shares of the new public entity. eLong Power shareholders are set to receive 45 million ordinary shares, valued at $10 per share, amounting to a total of $450 million in equity. Additionally, eLong Power’s majority shareholder stands to receive up to 9 million additional shares upon meeting certain revenue-based milestones in 2024 and 2025.
Financial Outlook and Future Expansion
The business combination will grant eLong Power access to U.S. public equity markets, facilitating its business expansion efforts. Any remaining cash in TMTC’s trust account post-transaction will be allocated to support eLong Power’s growth, subject to potential shareholder redemptions and transaction expenses. This strategic move positions eLong Power to explore new growth and value-creation opportunities.
