SHENZHEN, China,
March 14, 2022
/PRNewswire/ -- MingZhu Logistics Holdings Ltd. (NASDAQ: YGMZ) (the
"MingZhu" or "Company"), a leading trucking service provider, today
announced it has entered into a Share Purchase Agreement to
acquire Yinhua (BVI) Limited (the "Yinhua"), which develops
and operates a comprehensive auto related service platform to serve
auto insurance companies. MingZhu expects this acquisition to be
immediately accretive to its revenue, gross margin and net income.
The transaction is subject to closing conditions that are customary
for transactions of this type.
Under terms of the Share Purchase Agreement, MingZhu shall pay
$18,302,500 in exchange for 100%
equity of Yinhua. Of the total consideration to be paid,
$15,304,000 shall be paid in form of
3,826,000 newly issued ordinary shares of MingZhu, representing
$4.00 per ordinary share of MingZhu,
and US$1 million cash upon closing.
In addition, a cash earnout of US$1,998,500 shall be paid if Yinhua achieves a
net income target threshold of US$1.3
million during the calendar year 2022.
Founded in 2018, Yinhua provides diversified, differentiated and
customized value-added auto related services to auto insurance
companies, where the services include road security services, car
maintenance services, car inspection services and more. Yinhua
develops and operates a comprehensive auto related service platform
for auto insurance companies combining both intelligent
human-vehicle interaction functions with car owner programs.
Mr. Jinlong Yang, CEO of MingZhu,
said, "We are excited to have Yinhua's team joining MingZhu's
family. We were impressed with the comprehensive, scalable service
platform, business model and highly experienced management team of
Yinhua. This is an ideal acquisition for us because in addition to
the business being immediately accretive, we see extensive
opportunities to leverage the high margin platform. A core tenant
of our business has been delivering value added services to our
customers in the broader transportation and fleet management
industries. This is directly aligned with Yinhua's platform and we
look forward to collaborating to accelerate our shared growth and
profitability. We are also excited about this acquisition because
it is the next step in our ongoing diversification strategy. Our
focus remains on developing and adding assets that will
collectively drive improved multi-year growth and greater value
creation 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