BEIJING, Aug. 04, 2022 (GLOBE NEWSWIRE) — Kaixin Auto Holdings (“Kaixin” or the “Company”) KXIN announces today that it has received a total of $700 million in targeted investment proposals from multiple institutional investors. The investments will take effect concurrently with Kaixin’s proposed acquisition of a new energy vehicle maker. The investors intend to subscribe for the Company’s convertible preferred stock at a conversion price of at least $2.0 per share to be issued concurrently with the proposed acquisition transaction.
Since the establishment of its new energy vehicle business division in August 2021, Kaixin has been actively seeking high-quality new energy vehicle manufacturers as acquisition targets. The company has already identified a preliminary acquisition target and is in active negotiations with a number of investment funds. The above-mentioned $700 million investment would be allocated to the new energy vehicle business upon completion of the proposed acquisition of the new energy vehicle manufacturing business.
Mr. Mingjun Lin, Chairman and CEO of Kaixin, said, “A large amount of capital would be required to support the operations of the acquired electric vehicle maker. Securing the $700 million investment proposal will help strengthen our position and expedite the acquisition process. We expect to announce the target company in August.”
About Kaixin Auto Holdings
Kaixin Auto Holdings is one of the leading dealer networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China’s used car market and leveraging its proprietary hybrid business model that offers both a strong online and offline presence, Kaixin is in the process of evolving from a nationwide dealer network to become one of the major players in China’s EV market walk
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