SHENZHEN, China, Dec. 29, 2021 /PRNewswire/ -- MingZhu Logistics
Holdings Ltd. (NASDAQ: YGMZ) (the "MingZhu" or "Company"), a
leading trucking service provider, today announced that it entered
into a Share Purchase Agreement (the "SPA") on December 29, 2021 to acquire 100% of the equity
interest of Cheyi (BVI) Limited (the "Cheyi BVI") which operates
its business through its subsidiary Zhejiang CheYi Network
Technology Co., Ltd. (the "CheYi Network"), an integrated online
car-hailing and driver management services company. Pursuant to the
agreement, the total consideration for the acquisition of 100%
equity ownership of Cheyi BVI is an aggregate of U.S. $29,466,032, consisting of the issuance by the
Company to the shareholders of Cheyi BVI an aggregate of 3,189,000
fully paid Company's ordinary shares (being U.S. $12,756,000 of $4
per share) and payment of $2,000,000
at closing, and Year-2021 earnout payment of U.S. $8,826,019 and Year-2022 earnout payment of U.S.
$5,884,013 if the Cheyi BVI's audited
net income for its fiscal year 2021 and 2022 is no less than U.S.
$3,000,000 respectively. The two
earnout payments are due 13 months upon the delivery of Cheyi BVI's
audited financial statements. The parties plan to close the
transaction by December 31, 2021. The
acquisition is expected to offer MingZhu's customers additional
platform enhancements, and directly fits with MingZhu's acquisition
strategy, which includes adding financially accretive,
best-of-breed companies and products.
CheYi Network was established in December 2015 as a comprehensive automobile
service platform, providing a full range of services to the
automotive industry. CheYi Network has built an integrated business
platform with more than 6,000 vehicles and drivers for ride hailing
services under management. Its vehicles and drivers provide
services to major mobility technology platforms, such as SAIC
Mobility and T3 Mobility.
Mr. Jinlong Yang, Chairman and
Chief Executive Officer of MingZhu Logistics Holdings Limited,
commented, "We are excited to have CheYi Network now part of the
MingZhu team. The company is a perfect fit and brings an
impressive integrated platform featuring all the support and
services drivers need. This immediately broadens our portfolio and
will serve as a centerpiece of our continued diversification
strategy. Our priority remains unchanged. We are focused on
accelerating our growth strategy by strategically deploying capital
in both organic and inorganic opportunities, as we unlock MingZhu's
potential and greater value for shareholders."
About MingZhu Logistics Holdings Limited (NASDAQ:
YGMZ)
Established in 2002 and headquartered in Shenzhen, China, MingZhu Logistics Holdings
Limited is a 4A-rated professional trucking service provider. Based
on the Company's regional logistics terminals in Guangdong Province, MingZhu Logistics Holdings
offers tailored solutions to our clients to deliver their goods
through our network density and broad geographic coverage across
the country by a combination of self-owned fleets tractors and
trailers and subcontractors' fleets. For more information, please
visit ir.szygmz.com.
Forward-Looking Statements
The statements in this press release regarding the Company's
future expectations, plans and prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
regarding plans, goals, objectives, strategies, future events,
expected performance, assumptions and any other statements of fact
that have not occurred. Any statements that contain the words
"may", "will", "want", "should", "believe", "expect", "anticipate",
"estimate", "calculate" or similar statements that are not factual
in nature are to be considered forward-looking statements. Actual
results may differ materially from historical results or from those
expressed in these forward-looking statements as a result of a
variety of factors. These factors include, but are not limited to,
the Company's strategic objectives, the Company's future plans,
market demand and user acceptance of the Company's products or
services, technological advances, economic trends, the growth of
the trucking services market in China, the Company's reputation and brand, the
impact of industry competition and bidding, relevant policies and
regulations, fluctuations in China's macroeconomic conditions, and the
risks and assumptions disclosed in the Company's reports provided
to the CSRC (China Security Regulatory Commission) For these and
other related reasons, we advise investors not to place any
reliance on these forward-looking statements, and we urge investors
to review the Company's relevant SEC filings for additional factors
that may affect the Company's future results of operations. The
Company undertakes no obligation to publicly revise these
forward-looking statements subsequent to the filing of these
documents as a result of changes in particular events or
circumstances.
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SOURCE MingZhu Logistics Holdings Limited