Benzinga | Dec 13, 2021 10:46AM EST

Microvast Late Friday Issued Statement Related To 8-K Filing On Former SPAC Financials

Microvast Holdings, Inc. ("Microvast" or the "Company") (NASDAQ:MVST) today issued the below statement regarding its Form 8-K (the "8-K") filed with the Securities and Exchange Commission ("SEC") on December 10, 2021, which disclosed non-reliance on the historical financial statements of Tuscan Holdings Corp. ("Tuscan") prior to the business combination with Microvast on July 23, 2021, as a result of an accounting classification error related to Class A common stock subject to possible redemption issued as part of the units sold in Tuscan's initial public offering.

The matters addressed in the 8-K are unrelated to Microvast's current operations. The "material weakness" referenced in the 8-K existed at Tuscan and does not carry over to Microvast. It is related to the interpretation and accounting for the Tuscan Class A public shares classified as permanent or temporary equity prior to the business combination with Tuscan. The underlying economics of the SPAC, the business combination proceeds, the sources and uses, and the valuation at the close of the transaction were not impacted.

In addition, the Company is retroactively restating Microvast's historical financial statements for the three years ended December 31, 2020 to reflect the business combination.