Kandi Technologies Announces the Closing of a Registered Direct Placement of $60 Million of Common Stock and Warrants

Rhea-AI Summary

Kandi Technologies Group, Inc. (NASDAQ: KNDI) has completed a registered direct offering of 9,404,392 units at $6.38 per unit, raising approximately $60 million before expenses. Each unit comprises one share of common stock and 0.4 warrants, with warrants having an exercise price of $8.18 and a 30-month term, non-exercisable for the first six months. The net proceeds will be allocated for general working capital purposes. FT Global Capital acted as the exclusive placement agent for this transaction.

Positive

• Raised approximately $60 million in gross proceeds from the offering.
• Offering includes warrants which could enhance future capital raising potential.

Negative

• Warrants are not exercisable for the first six months post-issuance.

JINHUA, China, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the “Company” or “Kandi”) (NASDAQ GS: KNDI), today announced that it closed a registered direct offering of 9,404,392 units (the “Units”) of its securities at a purchase price per Unit of $6.38, generating aggregate gross proceeds to the Company of approximately $60,000,000, before deducting fees to the placement agent and other estimated offering expenses payable by the Company.  Each Unit consisted of one share of our common stock, and 0.4 warrants to purchase a share of our common stock.  The warrants have an exercise price of $8.18 per share and a term of 30 months, but are not exercisable for the first six months following issuance.  The Company issued a total of 9,404,392 shares of common stock and warrants for the purchase of up to 3,761,757 shares of common stock to the investors in the placement. 

The net proceeds from this offering will be used for general working capital purposes.  

FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.

Pryor Cashman LLP acted as counsel to the Company and Schiff Hardin LLP acted as counsel to the Placement Agent in connection with the placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

About Kandi Technologies Group, Inc.  

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles") and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States and Fengsheng Automobile Technology Group Co., Ltd (formerly known as Kandi Electric Vehicles Group Co., Ltd., the “Affiliate Company”). Kandi Vehicles has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.

In 2013, Kandi Vehicles and Geely Group, China's leading automaker, jointly invested in the establishment of the Affiliate Company in order to develop, manufacture and sell pure electric vehicle ("EV") products. Geely Group (including its affiliate) and Kandi Vehicles currently hold 78% and 22% of the equity interests in the Affiliate Company, respectively. The Affiliate Company has established itself as one of the driving forces in the development and the manufacturing of pure EV products in China.

More information about KNDI is available on the Company's corporate website at http://www.kandivehicle.com. The Company routinely posts important information on its website.

Safe Harbor Statement 

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes,""expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

Follow us on Twitter: @ Kandi_Group

For More Information:

Kandi Technologies Group, Inc.

Ms. Kewa Luo

Phone: +1 (212) 551-3610

Email: IR@kandigroup.com

The Blueshirt Group

U.S.:

Mr. Gary Dvorchak

Email: gary@blueshirtgroup.com

China:

Ms. Susie Wang

Email: susie@blueshirtgroup.com

FAQ

What is Kandi Technologies' stock symbol?

Kandi Technologies' stock symbol is KNDI.

How much money did Kandi Technologies raise in its recent offering?

Kandi Technologies raised approximately $60 million in its recent offering.

What are the terms of the warrants issued by Kandi Technologies?

The warrants have an exercise price of $8.18 per share and a term of 30 months, but are not exercisable for the first six months.

What will Kandi Technologies do with the proceeds from its offering?

The proceeds will be used for general working capital purposes.

Who acted as the placement agent for Kandi Technologies' offering?

FT Global Capital acted as the exclusive placement agent for the offering.