BEIJING, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) announces today that it has obtained a total of $700 million of targeted investment intentions from several institutional investors. The investments will take effect simultaneously with Kaixin’s intended acquisition of a new energy vehicle manufacturing company. The investors intend to subscribe for the Company’s convertible preferred shares with a conversion price of at least $2.0 per share, which are to be issued concurrent with the intended acquisition transaction.
Since the establishment of its new energy vehicle business department in August 2021, Kaixin has been actively seeking high-quality new energy vehicle manufacturers as acquisition targets. The Company has already identified a preliminary acquisition target and been in active negotiations with a number of investment funds. The above mentioned $700 million investments would be allocated to new energy vehicle business operations at completion of the intended acquisition of the new energy vehicle manufacturing company.
Mr. Mingjun Lin, Chairman and CEO of Kaixin, said: "A large amount of capital would be necessary to support business operations of the acquired EV manufacturer. The securing of the $700 million investment intentions helps strengthen our position to accelerate the acquisition process. We expect to announce the target company in August."
About Kaixin Auto Holdings
Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence, Kaixin is in the process of transforming from a nationwide dealerships network to one of the important players in China’s electric vehicle market.
Safe Harbor Statement
This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook for 2021 and quotations from management in this announcement, as well as Kaixin’s strategic and operational plans, contain forward-looking statements. Kaixin may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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SOURCE: Kaixin Auto Holdings