EHang Announces US$23 Million Private Placement Led by South Korean Strategic Investor Lee Soo Man
12 July 2023 - 6:00AM
EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the
world’s leading autonomous aerial vehicle (“AAV”) technology
platform company, today announced that it has entered into share
subscription agreements for a total of US$23,000,000 private
placement with several strategic investors led by Mr. Lee Soo Man,
a renowned South Korean music producer, entrepreneur, and the
founder of K-pop and SM Entertainment, a South Korean leading
multinational entertainment company listed in KOSDAQ (041510).
The Company will receive a deposit of 80% of the aggregate
purchase price for the proposed placement from the investors in
three business days. The transaction is expected to close in the
third quarter of 2023, subject to regulatory review and customary
closing conditions. The issuance of the Class A ordinary shares for
the private placement will be made outside the United States in
accordance with Regulation S under the Securities Act of 1933, as
amended. The Class A ordinary shares to be issued will be
restricted securities and may not be resold without registration or
an exemption from registration under U.S. federal and applicable
state securities laws.
In addition to the private placement, EHang and Mr. Lee Soo Man
will collaborate to drive the development of Urban Air Mobility
(“UAM”) business in Asian Pacific regions leveraging both’s
complimentary strengths.
The gross proceeds from the placement will be allocated by EHang
for working capital and general corporate purposes, enabling
acceleration of strategic plans for technology advancement,
business development and post-certification commercial operations.
This will further solidify EHang’s position as a leader in the
global UAM industry.
Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive
Officer, expressed his excitement about the investment and
partnership, stating, “I was impressed by Mr. Lee’s interest and
passion towards innovative technologies, future air mobility, and
our autonomous aerial vehicles. We are thrilled to have long-term
strategic investors and partners, such as Mr. Lee, who share the
same values and commitment in our journey. The placement and
partnership are testaments to the trust and belief in EHang’s
vision and prospects, propelling the Company into our next phase of
growth.”
The lead investor Mr. Lee Soo Man also conveyed his enthusiasm
and positive outlook for the future, remarking, “I appreciate
EHang’s unwavering dedication to enabling safe, autonomous and
eco-friendly air mobility for the general public, as the first
mover and a leading innovator in the emerging UAM industry with
great potential. I’m excited to embrace opportunities and
contribute to its growth through investing and collaborating with
EHang as a long-term investor. I look forward to the convergence of
cutting-edge transportation technologies and popular culture to
create sustainable value, and I’m proud to be part of it.”
About EHang
EHang (Nasdaq: EH) is the world’s leading autonomous aerial
vehicle (“AAV”) technology platform company. EHang’s mission is to
make safe, autonomous, and eco-friendly air mobility accessible to
everyone. EHang provides customers in various industries with AAV
products and commercial solutions: urban air mobility (including
passenger transportation and logistics), smart city management, and
aerial media solutions. As the forerunner of cutting-edge AAV
technologies and commercial solutions in the global Urban Air
Mobility (“UAM”) industry, EHang continues to explore the
boundaries of the sky to make flying technologies benefit our life
in smart cities. For more information, please visit
www.ehang.com.
Safe Harbor Statement
This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to”
and similar statements. Statements that are not historical facts,
including statements about management’s beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to those
relating to EH216-S type certification, our expectations regarding
demand for, and market acceptance of, our AAV products and
solutions and the commercialization of UAM services, our
relationships with strategic partners, and current litigation and
potential litigation involving us. Management has based these
forward-looking statements on its current expectations,
assumptions, estimates and projections. While they believe these
expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions
and involve known and unknown risks and uncertainties, many of
which are beyond management’s control. These statements involve
risks and uncertainties that may cause EHang’s actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by these
forward-looking statements.
Media Contact: pr@ehang.com
Investor Contact: ir@ehang.com
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