Autozi Internet Technology (Global) Ltd. Announces Waiver of IPO Lock-up Restriction for its Controlling Shareholder to Enable Share Transfer to Two Consulting Service Providers
Rhea-AI Summary
Autozi Internet Technology (Nasdaq: AZI) announced that Qirun Investment, owned by CEO Dr. Houqi Zhang, will transfer 2.8 million shares to two consulting firms: 2 million shares to Leisure Stream and 800,000 shares to CG Summit Inc. The transfer comes after Kingswood Capital Partners waived lock-up restrictions, effective December 3, 2024. Both receiving firms will enter new 6-month lock-up agreements lasting until February 27, 2025. The share transfers are compensation for strategic consulting services focused on U.S. market analysis, business development, and auto parts supply chain connections.
Positive
- Strategic expansion into North American market through consulting partnerships
- No direct financial impact on company's operations or balance sheet as shares are from CEO's personal holdings
Negative
- 2.8 million shares being transferred could signal potential future selling pressure after lock-up expiration
- Early lock-up waiver might raise concerns about insider stock retention
News Market Reaction
On the day this news was published, AZI declined 9.49%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Kingswood Capital Partners, LLC ("Kingswood"), the underwriter of the Company's recent initial public offering, is waiving a lock-up restriction on 2,800,000 shares held by Qirun to allow the Share Transfers, effective on December 3, 2024. On the same date, each of Leisure Stream Limited and CG Summit Inc. will enter into a lock-up agreement with Kingswood, substantially similar to the terms previously agreed upon with Qirun, under which they committed not to sell, transfer, or otherwise dispose of, directly or indirectly, any shares of the Company acquired through the Share Transer for a period of six months from August 27, 2024, the date of the final prospectus relating to our initial public offering. The Share Transfers are expected to be completed soon.
Dr. Zhang commented, "These strategic partnerships represent a personal commitment to exploring new opportunities that could, in the long term, enhance Autozi's presence and capabilities in the global market. By leveraging my personal resources to engage with experienced consulting firms, I aim to lay the groundwork for potential expansion into the North American market. This initiative allows us to assess the landscape without impacting Autozi's current operations or financial standing, ultimately aligning with our goal of delivering value to our shareholders."
Specifically, Leisure Stream Limited agreed to provide strategic consulting services to Qirun, including financial analysis and market research related to the U.S. market, in exchange for 2,000,000 shares of Autozi's common stock. CG Summit Inc. agreed to offer business development and talent acquisition services to Qirun Investment Co., Ltd., focusing on introductions to
About Autozi Internet Technology (Global) Ltd.
Autozi Internet Technology (Global) Ltd. is one of the leading and fast-growing lifecycle automotive service providers in China. Autozi, founded in 2010, provides high-quality, affordable and professional one-stop automotive products and services through online and offline channels nationwide. Our business segments include (i) new car sales, (ii) auto parts and auto accessories sales, and (iii) automotive insurance related services. Leveraging our online supply chain cloud platform, SaaS platforms, and the network of multiple-brand-service (MBS) stores, we have established an ecosystem of lifecycle automotive services by connecting automotive manufacturers, auto parts manufactures, and insurance companies with MBS stores and various automotive owners. For more information, visit the Company's website at https://www.autozi.com/en/investor.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
Contact Information
The Blueshirt Group
Jack Wang
Email: Jack@blueshirtgroup.co
View original content:SOURCE Autozi Internet Technology (Global) Ltd.
FAQ
How many shares of AZI stock are being transferred by Qirun Investment?
When does the lock-up period end for AZI shares transferred to the consulting firms?
What services will the consulting firms provide to AZI in exchange for shares?
