Kaixin Auto Holdings Announces Entry into a Binding Term Sheet and Changes to Senior Management
Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN)
today announced that it entered into a binding term sheet (the
“Biding Term Sheet”) with Haitaoche Limited (Cayman) (“Haitaoche”)
on November 3, 2020 and that it has made certain changes to its
senior management team.
Binding Term Sheet with
The Binding Term Sheet sets forth the terms and conditions by
which Haitaoche will merge with a newly formed wholly-owned
subsidiary of Kaixin, with Haitaoche continuing as the surviving
entity and a wholly-owned subsidiary of Kaixin (the “Merger”).
As consideration for the Merger, Kaixin will issue a number of
ordinary shares of Kaixin to the shareholders of Haitaoche (the
“Haitaoche Shareholders”) so that the Haitaoche Shareholders will
collectively hold 51% of Kaixin’s share capital upon the closing of
the Merger (the “Closing”).
Haitaoche is a China-based e-commerce platform for imported
automobiles. The manufacture and distribution of automobiles are
undergoing significant changes in China, which are expected to
create new opportunities and business models. Haitaoche strives to
become a leading automobile retail platform in China. In addition
to strengthening its imported automobile sales business, it plans
to expand into electronic vehicles and other business areas.
Haitaoche aims to enter into strategic cooperation agreements with
multiple electronic vehicle manufacturers in China and serve a
wider group of distributors and consumers.
Pursuant to the Binding Term Sheet, Haitaoche will contribute
its vehicle sales business to the Company as part of the Merger. It
also intends to contribute other projects to the Company after the
Kaixin and Haitaoche agree to negotiate in good faith to enter
into a definitive agreement with respect to the Merger. The Closing
is subject to customary and certain other conditions, including
applicable shareholder and regulatory approvals, as well as an
undertaking by Haitaoche to ensure certain minimum net asset and
cash levels at the Closing.
Upon the Closing, the Haitaoche Shareholders will have the right
to appoint a majority of Kaixin’s directors. Kaixin’s current
controlling shareholder, Renren Inc., will have the right to
appoint the remaining directors and have veto rights on certain
major corporate matters.
Changes to Senior Management
Mr. Chen Ji and Mr. Jinfeng Xie have resigned from their
positions as the Company’s chief executive officer and chief
operating officer, respectively, effective as of November 3, 2020.
Meanwhile, the Company’s board of directors has appointed Mr.
Mingjun Lin, the founder of Haitaoche, as the Company’s acting
chief executive officer, effective as of November 3, 2020.
Mr. Mingjun Lin has substantial experience in automotive
internet media. Prior to founding Haitaoche in 2015, Mr. Lin held
senior management positions with TOM Online and Tencent, and he was
the founder of SUV.cn, a vertical online media that focused on SUV
"On behalf of Kaixin’s Board of Directors and management team,
I'd like to thank Mr. Ji and Mr. Xie for their contributions to the
Company during their service in the management team. We wish them
the best in their future endeavors." said Mr. Joseph Chen, Chairman
of Kaixin. "I would also like to warmly welcome Mr. Mingjun Lin to
the Company. Mr. Lin brings to Kaixin his profound experience in
internet and auto retail business. I look forward to working with
him and am confident that his strong leadership and deep industry
background will make him a tremendous asset to our management
Safe Harbor Statement
This announcement contains 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. Kaixin may also
make written or oral forward-looking statements in its filings with
the 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; the expected growth of the
social networking site market in China; our expectations regarding
demand for and market acceptance of our services; our expectations
regarding the retention and strengthening of our relationships with
used 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.
For more information, please contact:
Investor RelationsKaixin Auto HoldingsTel: +86 (10)