Shipping company Caravelle Group has signed a definitive merger agreement with a special purpose acquisition company (SPAC), Pacifico Acquisition , to go public in a deal worth around $527m.

Existing shareholders will transfer 100% of their equity into the merged entity.

The deal is anticipated to deliver around $100m of cash proceeds. This includes an expected $60m private investment in public equity (PIPE) as well as up to $58m of cash in the Pacifico trust account.

Caravelle CEO Dr Guohua Zhang said: “Being what we believe will be the first ocean-carbon neutral technology public company on Nasdaq, Caravelle hopes to jump-start the ocean economy and carbon neutral technology into exponential growth, as well as achieve environmental, social and corporate governance (ESG) goals in the ocean transportation industry.”

Caravelle offers international shipping services and carbon-neutral solutions for wood desiccation.

The ocean technology company claims that it takes a ‘novel approach’ for shipping time and space, as well as repurposing engine heat and by-products to cut down carbon emissions.

It aims for a carbon-neutral future for the timber shipping and processing industry.

The firm’s CO-Tech model is claimed to be the only ocean drying technology in the timber shipping industry.

Pacifico CEO Edward Cong Wang said: “We are committed to assisting Caravelle in its transition from a great private company to a great public company by leveraging our deep understanding in both private and public capital markets.”

The deal awaits approval from stockholders, with completion anticipated in the fall of this year.