KANDI TECHNOLOGIES GROUP, INC. (NASDAQ:KNDI) Files An 8-K Entry into a Material Definitive Agreement

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KANDI TECHNOLOGIES GROUP, INC. (NASDAQ:KNDI) Files An 8-K Entry into a Material Definitive Agreement

KANDI TECHNOLOGIES GROUP, INC. (NASDAQ:KNDI) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01

ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On March 21, 2019, Zhejiang Kandi Vehicles Co., Ltd. (“Kandi Vehicles”), a company organized under the laws of the People’s Republic of China (the “PRC”), entered into an Equity Transfer Agreement (the “Transfer Agreement”) with Geely Technologies Group Co., Ltd. (“Geely”) to transfer certain equity interests in Kandi Electric Vehicles Group Co., Ltd. (the “JV Company”). Kandi Vehicles is a wholly-owned subsidiary of Kandi Technologies Group, Inc., a Delaware corporation (the “Company”).

Before the transaction contemplated by the Transfer Agreement takes place, the JV Company agrees to convert a loan of RMB314 million (approximately $46.7 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the JV Company shall become RMB2.44 billion (approximately $363.2 million), Kandi Vehicles shall own 43.47% and Geely shall own 56.53%, of the equity interests in the JV Company, upon the conversion of the loan into equity in the JV Company.

to the Transfer Agreement, Kandi Vehicles agrees to sell 21.47% of its equity interests in the JV Company to Geely for a total amount of RMB516 million (approximately $76.9 million). The purchase consideration shall be paid in cash in three installments: (i) Within 15 business days from the signing date of the Equity Transfer Agreement, RMB100 million (approximately $14.9 million) shall be paid; (ii) Within three months from the completion of the ownership updates of the JV Company with the State Administration and Industrial and Commerce bureau (the “SAIC”), RMB261.20 million (approximately $38.9 million) shall be paid; and (iii) Within six months from the completion of the ownership updates of the JV Company with the SAIC, RMB154.80 million (approximately $23.1 million) shall be paid.

After the completion of the equity interests transfer referenced above, Kandi Vehicles shall own 22% equity interests of the JV Company and Geely and its affiliates shall own 78% equity interests of the JV Company. Both parties further agree that within next two years the Company may purchase a portion of the assets of the JV Company in the form of its shares, resulting Geely becoming a significant shareholder of the Company.

ITEM 7.01 REGULATION FD DISCLOSURE.

On March 25, 2019, the Company issued a press release announcing its equity restructure of the JV Company. A copy of the press release is furnished hereto as Exhibit 99.1.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

Exhibits.

The following is furnished as exhibit to this report:

Kandi Technologies Group, Inc. Exhibit
EX-99.1 2 f8k032119ex99-1_kanditech.htm PRESS RELEASE OF KANDI TECHNOLOGIES GROUP,…
To view the full exhibit click here

About KANDI TECHNOLOGIES GROUP, INC. (NASDAQ:KNDI)

Kandi Technologies Group, Inc. (Kandi) is focused on the development of pure electric vehicle (EV) products and manufacturing electric vehicle’s parts. The Company’s business operations are the design, development, manufacturing and commercialization of electric vehicles, electric vehicle parts and off-road vehicles, which are distributed in China and global markets. Its products include EV parts, EV products and off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts and others. The Company conducts its business operations through its subsidiary, Zhejiang Kandi Vehicles Co., Ltd. (Kandi Vehicles), and the partial subsidiaries of Kandi Vehicles. The Company focuses on fuel efficient, pure EV parts manufacturing. Its subsidiary, Jinhua Kandi New Energy Vehicles Co., Ltd., holds battery packing production rights, and supplies the battery pack to the joint venture company.