Factorial to go public via SPAC merger valued at $1.1 billion

Factorial Inc., a solid-state battery technology company, announced a definitive business combination agreement with Cartesian Growth Corporation III (NASDAQ: CGCT), a special purpose acquisition company.

The transaction values Factorial at approximately $1.1 billion on a pre-money, pre-merger basis. The deal includes $100 million in new capital from institutional investors through a private placement of common stock. Cartesian III holds approximately $276 million in cash in trust, subject to redemption.

Upon closing, the combined company will trade on NASDAQ under the ticker symbol FAC. Assuming no redemptions, the combination will result in a pro forma equity value of approximately $1.5 billion.

Factorial's solid-state batteries have undergone testing with automotive manufacturers. The company reported that its technology achieved over 1,200 kilometers of driving range in a modified Mercedes-Benz EQS test vehicle using 106 Ah cells. Stellantis laboratory testing verified 77Ah cells for energy density, charging speed, and temperature performance.

The company has collaboration agreements with Mercedes-Benz, Stellantis, Hyundai Motor Company, and Kia Corporation. Factorial is targeting applications beyond passenger vehicles, including defense, aerospace, and robotics sectors.

"This agreement marks a pivotal inflection point in our progression from proven technology to broad commercial deployment across multiple industries," said Dr. Siyu Huang, co-founder and CEO of Factorial.

The proposed combination is expected to close in mid-2026, subject to customary closing conditions. Cantor Fitzgerald is serving as exclusive financial advisor to Factorial and sole placement agent for the private placement.

Information about the transaction will be detailed in a Form 8-K filing by Cartesian III with the Securities and Exchange Commission.

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