Kandi Technologies Announces Entry into Agreement for Registered Direct Placement of $100 Million of Common Stock and Warran...
Kandi Technologies Group, Inc. (the “Company” or “Kandi”) (NASDAQ
GS: KNDI), today announced that it has entered into a securities
purchase agreement with certain institutional investors for a
registered direct placement of $100 million of 8,849,560 units (the
“Units”) of its securities at a purchase price per Unit of $11.30,
generating aggregate gross proceeds to the Company of approximately
$100 million, before deducting fees to the placement agent and
other estimated offering expenses payable by the Company.
Each Unit consisted of one share of our common stock and 0.4
warrants to purchase a share of our common stock. The
warrants have an exercise price of $14.50 per share, a term of 30
months, and are exercisable upon issuance.
The net proceeds from this offering are expected
to be used for general working capital purposes including research
and development of EV sports car models and expenditures necessary
to assure that our EV models comply with all necessary requirements
for the entry into the U.S. market. The completion of the
placement is expected to occur no later than November 24, 2020,
subject to the satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive
placement agent for the transaction.
These securities are being offered through a
prospectus supplement pursuant to the Company’s effective shelf
registration statement and base prospectus contained therein. A
shelf registration statement (SEC Filing No. 333-249585) relating
to these securities has been filed with and declared effective by
the Securities and Exchange Commission (the “SEC”) on October 29,
2020. A prospectus supplement related to the offering will be filed
with the SEC. This press release does not constitute an offer to
sell or the solicitation of an offer to buy, and these securities
cannot be sold in any state in which this offer, solicitation, or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state. Any offer will be made only
by means of a prospectus, including a prospectus supplement,
forming a part of the effective registration statement.
For further details of this transaction, please
see the Form 8-K to be filed with the SEC.
About Kandi Technologies Group,
Kandi Technologies Group, Inc. (KNDI),
headquartered in Jinhua Economic Development Zone, Zhejiang
Province, is engaged in the research, development, manufacturing,
and sales of various vehicular products. Kandi conducts its primary
business operations through its wholly-owned subsidiary, Zhejiang
Kandi Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries
including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC
Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary
of Kandi in the United States and Fengsheng Automobile Technology
Group Co., Ltd (formerly known as Kandi Electric Vehicles Group
Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established
itself as one of China's leading manufacturers of pure electric
vehicle parts and off-road vehicles.
In 2013, Kandi Vehicles and Geely Group, China's
leading automaker, jointly invested in the establishment of the
Affiliate Company in order to develop, manufacture and sell pure
electric vehicle ("EV") products. Geely Group (including its
affiliate) and Kandi Vehicles currently hold 78% and 22% of the
equity interests in the Affiliate Company, respectively. The
Affiliate Company has established itself as one of the driving
forces in the development and the manufacturing of pure EV products
More information about KNDI is available on the
Company's corporate website at http://www.kandivehicle.com. The
Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains certain statements
that may include "forward-looking statements." All statements other
than statements of historical fact included herein are
"forward-looking statements." These forward-looking statements are
often identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions, involving known and
unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website (http://www.sec.gov).
All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their
entirety by these risk factors. Other than as required under the
applicable securities laws, the Company does not assume a duty to
update these forward-looking statements.
Follow us on Twitter: @ Kandi_Group
For More Information:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
Phone: +1 (212) 551-3610
The Blueshirt Group
Mr. Gary Dvorchak
Ms. Susie Wang