HANGZHOU, China, April 3,
2024 /PRNewswire/ -- Jiuzi Holdings Inc. (Nasdaq:
JZXN; the "Company" or "JZXN"), an emerging new energy vehicle
(NEV) dealership group operating under the brand name "Jiuzi" in
China, announced today that
Shenzhen Jiuzi New Energy Holding Group Co., Ltd. ("Shenzhen
Jiuzi"), a wholly owned subsidiary of the Company, entered into a
non-binding letter of intent ("LOI") for the acquisition of
Shenzhen Maigesong Electric Technology Co., Ltd. ("Shenzhen
Maigesong").
Pursuant to the terms of the LOI, Shenzhen Jiuzi will acquire
100% of the equity of Shenzhen Maigesong in exchange for certain
restricted share compensation of the Company and upon the
completion of the acquisition, the Company shall invest
RMB 30 million to fund the
construction of Shenzhen Maigesong's rechargeable lithium battery
production line. This investment will be divided into two stages,
with RMB 15 million to be invested by
the end of April 2024 and another
RMB 15 million by the end of
November 2024. The construction of
this production line will be led by the original shareholders of
Shenzhen Maigesong, Mr. Li Song and
Mr. Fan Xuejun (the "Maigesong Shareholders"). Upon the completion
of the battery production line, it will immediately commence
production and sales of rechargeable lithium battery products.
The LOI includes an earnout provision which provides that
Shenzhen Maigesong shall achieve a revenue target of RMB 119.81 million by the end of December 2025, and a revenue target of
RMB 504.22 million by the end of
December 2026. The parties agreed in
the LOI that if the actual revenue generated between 2024 and 2025
falls below 80% of the revenue target, the Maigesong Shareholders
will provide corresponding compensation measures with their held
shares and lose control of Shenzhen Maigesong.
The inclusion of the earnout provision holds significant
importance for both the Company and Shenzhen Maigesong. It clearly
defines the rights and responsibilities of both parties and
represents not only a risk and challenge but also opportunity and
motivation. Both parties will work together to achieve the revenue
targets and promote the sustained development and growth of the
enterprise.
About Jiuzi Holdings, Inc.
Jiuzi Holdings, Inc., headquartered in Hangzhou, China, and established in 2017,
franchises and operates retail stores under the brand name "Jiuzi"
to sell New Energy Vehicles ("NEVs") in third and fourth-tier
cities in China. The Company
mainly sells battery-operated electric vehicles and sources NEVs
through more than twenty NEV manufacturers. It has 51 operating
franchise stores and one company-owned store. For more information,
visit the Company's website at http://www.zjjzxny.cn/.
About Shenzhen Maigesong Electric Technology Co.,
Ltd.
Maigesong Electric specializes in the design and development of
embedded battery control systems, providing customers with products
or key components through ODM or SKD models, as well as
intellectual property licensing. It also provides comprehensive
technical support and ancillary services. The company holds nearly
a hundred patents and has obtained over ten system certifications,
including UL (UL2054-2011) (U.S. safety standard for household and
commercial batteries) and CB (IEC62133-2:2017) (EU safety
certification for lithium-ion batteries used in portable electronic
products).For more information, visit the Company's website at
http://www.mgxon.com/.
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. They
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, including the expectation that the Offering
will be completed. 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. Specifically, forward-looking statements may include
statements related to the following matters of the Company:
- Ability to implement its business plan;
- Changes in the Company's product and service market; and
- Expansion plans and opportunities.
These forward-looking statements are based on information
available as of the date of this press release and our management's
current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties that may cause actual
results or performance to be materially different from those
expressed or implied by these forward-looking statements, including
the occurrence of any event, change or other circumstances that
could give rise to the terms of the LOI not hereafter being
memorialized in a definitive agreement; the outcome of any legal
proceedings that have been, or will be, instituted against the
Company or other parties to the LOI following announcement of the
LOI and transactions contemplated therein; the ability of the
Company to meet NASDAQ listing standards in connection with the
consummation of the transaction contemplated therein; the inability
to complete the transactions contemplated by the LOI due to the
failure to meet certain closing conditions; risks that the proposed
transaction disrupts current plans and operations and the potential
difficulties in employee retention as a result of the announcement
of the LOI and consummation of the transaction described therein;
costs related to the proposed acquisition; changes in applicable
laws or regulations; the ability of the combined company to meet
its financial and strategic goals, due to, among other things,
competition, the ability of the combined company to grow and manage
growth profitability, maintain relationships with customers and
retain its key employees; the possibility that the combined company
may be adversely affected by other economic, business, and/or
competitive factors; and other risks and uncertainties described
herein, as well as those risks and uncertainties discussed from
time to time in other reports and other public filings with the
Securities and Exchange Commission by the Company. The Company
undertakes no obligation to update forward-looking statements to
reflect subsequent events, 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. Accordingly,
forward-looking statements should not be relied upon as
representing our views as of any subsequent date, and you should
not place undue reliance on these forward-looking statements in
deciding whether to invest in our securities. We do not undertake
any obligation to update forward-looking statements to reflect
events or circumstances after the date they were made, whether as a
result of new information, future events or otherwise, except as
may be required under applicable securities laws.
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SOURCE Jiuzi New Energy Holding Group Co., Ltd.
