SHENZHEN, China, May 26, 2023
/PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or
the "Company") (NASDAQ: YGMZ), an elite provider of logistics and
transportation services to businesses, today announced it has
entered into a Share Purchase Agreement (the "SPA") to acquire 100%
equity of Alliance Liquor Investment (BVI) Limited ("Alliance
Liquor"), which operates its liquor distribution business through
its variable interest entity Xiamen Alliance Liquor Industry Group
Co., Ltd. (formerly known as Guizhou Minzusheng Liquor Co., Ltd.)
in China. The transaction is
subject to the conditions that are customary for transactions of
this type. The Company and Alliance Liquor had previously announced
that they entered into a non-binding memorandum of understanding on
February 21, 2023, with the plan to
further invest in and jointly develop a commercial liquor
distribution business across China.
Under terms of the SPA, MingZhu shall acquire 100% of Alliance
Liquor in exchange for the issuance of 4,569,095 ordinary shares of
Mingzhu upon closing. The shareholder of Alliance Liquor shall
receive additional First Earnout Payment of $8,042,090 and Second Earnout Payment of
$8,042,090 respectively if the net
income of Alliance Liquor is no lower than US$2 million for the fiscal year 2023 and 2024
respectively.
The acquisition is part of Mingzhu's previously announced
strategic plan, under which the Company announced its intention to
expand into the commercial liquor distribution market given the
synergies and adjacency to its existing business. This initially
included cooperating with a China-based distributor of liquor and other
spirits to enhance its commercial liquor distribution business
across China, subject to final
agreement.
Alliance Liquor is a liquor distributor that focuses on
distributing liquor brewed in Maotai town, Guizhou. Liquor is considered to be
China's national drink and is the
dominant spirits sold in the domestic China market, with the "white liquor" a normal
staple at occasions from family gatherings to business banquets
while the Maotai town is the most well-known origin of liquor.
Mr. Jinlong Yang, Chairman and
Chief Executive Officer of MingZhu, commented, "We have spent the
past few months working side by side in detailed due diligence,
which gave us even higher confidence in the long-term potential for
the business, synergies with our existing operations, strategic fit
and confidence in the operations team. The combination gives us an
even stronger market position and broader platform to drive growth.
From a timing standpoint, this transaction makes perfect sense
given the reopening of the economy, expected growth of the Chinese
spirits market and desire to buy premium quality liquor as a center
piece for celebrations."
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