Kandi Technologies announces equity restructuring of JV company
Kandi Technologies announced today that Kandi's wholly-owned subsidiary, Zhejiang Kandi Vehicles on March 21 with Geely Technologies Group to transfer certain equity interests in the Kandi Electric Vehicles Group to Geely. Pursuant to the Transfer Agreement, the parties have agreed to some of the key terms below:The JV Company agrees to convert a loan of $46.7M from Geely Group last year to equity in order to increase its cash flow. As a result, the registered capital of the JV Company shall become $363.2M Kandi Vehicles shall own 43.47% and Geely shall own 56.53%, of the equity interests in the JV Company, respectively, upon the conversion of the loan into equity in the JV Company; Kandi Vehicles agrees to sell 21.47% of its equity interests in the JV Company to Geely for a total amount of $76.9M. Kandi Vehicles shall own 22% of the equity interests of the JV Company after the transfer; Both parties further agreed that within next two years, Kandi may purchase a portion of the assets of the JV Company in the form of its shares, resulting in Geely becoming a significant shareholder of the company.