Kandi Technologies Acquires Sportsman Country, LLC
June 04 2018 - 08:33AM
Kandi Technologies Group, Inc. (the “Company,”
“we” or “Kandi”) (NASDAQ GS:KNDI), today announced that Kandi
entered into a Membership Interests Transfer Agreement (the
“Transfer Agreement”) with the two members (the “Transferors”) of
Sportsman Country, LLC (“Sportsman Country”) under which Kandi will
acquire 100% of the ownership of Sportsman Country. The Transfer
Agreement was signed on May 31, 2018.
Sportsman Country is a Dallas based sales
company primarily engaged in the wholesale of off-road vehicle
products, with a small percentage of business in off-road vehicle
parts wholesale and retail. Currently, Sportsman Country has a
seasoned management team and a distribution force averaging over
ten years of sales experience. With countrywide sales channels in
the US, its off-road vehicle products are particularly popular to
American consumers.
According to the terms of the Transfer
Agreement, the Transferors promised that Sportsman Country will
achieve pre-tax profit totaling over $10.0 million from 2017 to
2020. The pre-tax profit in 2017 was $1.02 million and Sportsman
Country is targeting a pre-tax profit of more than $2.0 million,
$3.0 million, $4.0 million for 2018, 2019 and 2020, respectively.
Kandi will transfer $10.0 million worth of corresponding restricted
shares to acquire 100% membership interests in Sportsman Country.
Kandi is required to issue $1.0 million worth of corresponding
restricted shares within 30 days from the signing date of the
Transfer Agreement, the remaining $9.0 million worth of
corresponding restricted shares will be released from escrow based
on its pre-tax profit performance, i.e., $2.0 million worth of
corresponding restricted shares will be released from escrow if
pre-tax profit of $2.0 million is achieved for the full year of
2018, $3.0 million worth of corresponding restricted shares will be
released from escrow if pre-tax profit of $3.0 million is achieved
for the full year of 2019, $4.0 million worth of corresponding
restricted shares will be released from escrow if pre-tax profit of
$4.0 million is achieved for the full year of 2020. For more
details on the terms of the purchase, please refer to the Company's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on the same day of this press release.
Mr. Hu Xiaoming, Chairman and Chief Executive
Officer of Kandi commented, "The powersports market is improving
and is expected to continue to grow in the near future. After
conducting a thorough due diligence on Sportsman Country, we
determined that the company had strong performance in terms of
business execution, sales network, marketing cost controls, and
profitability. The acquisition is an entry point to gain a
compelling opportunity for business integration and market
expansion in America which will provide Kandi a solid foundation
for the future strategic business development.”
About Kandi Technologies Group,
Inc.
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua,
Zhejiang Province, is engaged in the research and development,
manufacturing and sales of various vehicle products. Kandi has
established itself as one of China's leading manufacturers of pure
electric vehicle ("EV") products (through its joint venture), EV
parts and off-road vehicles. Kandi conducts its primary business
operations through its wholly-owned subsidiary, Zhejiang Kandi
Vehicles Co., Ltd. (“Kandi Vehicles”), and the partially and
wholly-owned subsidiaries of Kandi Vehicles.
More information can be viewed at the Company's corporate
website at http://www.kandivehicle.com. The Company routinely
posts important information on its website.
Safe Harbor StatementThis 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
securities laws, the Company does not assume a duty to update these
forward-looking statements.
Follow us on Twitter: @ Kandi_Group
Company Contact:
Ms. Kewa LuoKandi Technologies Group, Inc.Phone:
1-212-551-3610Email: IR@kandigroup.com
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