SINGAPORE, Nov 28 (Reuters) – Lotus Technology, the luxury electric vehicle arm of sports car brand Lotus, said on Tuesday it has secured $870 million in financing ahead of the completion of its merger with blank check company L Catterton Asia Acquisition (LCAA) (LCAA.O).

All of the financing was secured based on a $5.5 billion valuation, China-headquartered Lotus Technology said in a statement.

Investors will be issued public shares upon closing of the business combination with LCAA, and result in Lotus Technology having a free float of over 19%, excluding existing LCAA shareholders, it said.

The funds will be used to further advance development of “next-generation automobility technologies, promote product innovation, support the company’s expansion of its global distribution network, and for general corporate purposes”, the statement showed.

Lotus Technology in January said it will go public in the United States by merging with LCAA, a special purpose acquisition company (SPAC) formed by affiliates of L Catterton, an investment firm backed by luxury goods empire LVMH Louis Vuitton Moet Hennessy (LVMH.PA).

Lotus Technology is part of British sports car maker Lotus Group which is in turn owned jointly by Chinese automaker Geely (GEELY.UL) and Malaysia’s Etika Automotive.

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