EF Hutton Acquisition Corporation I (NASDAQ: EFHT) experienced a notable surge of 11.95% in its stock value during the extended trading session on Tuesday, reaching $3.28. This upswing partially mitigated the substantial regular-session loss of 59.92%, resulting in the stock closing at $2.93. These fluctuations followed the recent finalization of a business combination deal.
Yesterday, EF Hutton (EFHT) officially confirmed the successful conclusion of its business combination with Humble Imports, Inc. operating as ECD Auto Design. ECD stands out as a frontrunner in the restoration, modification, and electrification of Land Rover Defenders, Jaguars, and other classic vehicles.
The merged entity, operating under the name ECD Automotive Design Inc., is slated to commence trading on the Nasdaq Global Market with the ticker symbol “ECDA” on Wednesday, December 13, 2023. Scott Wallace, the CEO and Co-Founder, will continue to lead the consolidated company, supported by the current proficient management team, including Co-Founders Tom Humble, Emily Humble, Elliott Humble, and CFO Raymond Cole.
The completion of this transaction, coupled with a Nasdaq listing, positions the merged company for accelerated growth as a dominant force in restomods. ECD, as a prominent player in this emerging industry, serves as a platform for the restoration and modification of exotic automobiles.
ECD has been predominantly self-financed since its inception, boasting a business generating positive free cash flow. The infusion of capital resulting from this transaction has the potential to expedite ECD’s already robust organic growth and facilitate further acquisitive expansion. The business combination places a proforma enterprise value of $330 million on ECD. As part of the closing, existing ECD shareholders received $2 million in cash.
The transaction garnered support through a $15 million financing, led by strategic investors in the form of a new series of Senior Secured Convertible Notes with an aggregate original principal amount of approximately $15.8 million. EFHT shareholders provided their approval for the business combination at a special meeting held on December 7, 2023.
