Deal Expands Critical First and Last Mile Slack Coal
Transport Network
SHENZHEN, China, Dec. 21,
2022 /PRNewswire/ -- MingZhu Logistics Holdings
Ltd. (NASDAQ: YGMZ) (the "MingZhu" or "Company"), a leading
trucking service provider, today announced it has entered into a
Share Purchase Agreement (the "SPA") to acquire Feipeng Global
Limited (the "Feipeng"), a services provider of slack coal
transportation for the "first and last mile" by road-railway
intermodal system in Xinjiang, China. The acquisition is valued at
approximately US$15 million and is
expected to be immediately accretive to MingZhu's revenue, gross
margin and net income. The transaction is subject to the conditions
that are customary for transactions of this type.
Under terms of the SPA, MingZhu acquired 100% of Feipeng for
approximately US$15 million, of which
US$10 million will be paid in cash
upon closing in form of cash. Feipeng shall receive a certain
number of shares valued at approximately US$5 million if it achieves a targeted net income
of US$2.4 million during the calendar
year 2023.
Mr. Jinlong Yang, Chairman and
Chief Executive Officer of MingZhu Logistics Holdings Limited,
commented, "This is a material transaction for us, which gives us
higher confidence in our growth prospects over the coming year. We
are excited to have the Feipeng team to join the Mingzhu family.
There are immediate synergies between our two companies and the
financial terms were compelling. Feipeng is known as a market
leader in large cargo transportation networks. Our mutual focus on
increased sustainability and efficiency for the logistics supply
chain are directly aligned as we will now work together to execute
Mingzhu's Scale strategy. We were impressed with the Feipeng team
and look forward to working more closely together as part of our
commitment to continued innovation. Our priority is to create a
faster, even more efficient, intermodal transportation system to
better serve key commerce centers, like Xinjiang. This will allow
us to better facilitate bulk transfer by road to rail, as well to
as to ship coal by containers to increase improve the transport
capacity."
About Feipeng
Founded in July 2014, Feipeng
Logistics provides integrated solutions to the logistics supply
chain that reduce costs and increase efficiency. Feipeng Logistics
is based in China's Xinjiang
Autonomous Region, a strategically important location for
manufacturing and commerce.
About MingZhu Logistics Holdings Limited (NASDAQ:
YGMZ)
Established in 2002 and headquartered in Shenzhen, China, MingZhu Logistics Holdings
Limited is a 4A-rated professional trucking service provider. Based
on the Company's regional logistics terminals in Guangdong Province, MingZhu Logistics Holdings
offers tailored solutions to our clients to deliver their goods
through our network density and broad geographic coverage across
the country by a combination of self-owned fleets tractors and
trailers and subcontractors' fleets. For more information, please
visit ir.szygmz.com.
Forward-Looking Statements
The statements in this press release regarding the Company's
future expectations, plans and prospects constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
regarding plans, goals, objectives, strategies, future events,
expected performance, assumptions and any other statements of fact
that have not occurred. Any statements that contain the words
"may", "will", "want", "should", "believe", "expect", "anticipate",
"estimate", "calculate" or similar statements that are not factual
in nature are to be considered forward-looking statements. Actual
results may differ materially from historical results or from those
expressed in these forward-looking statements as a result of a
variety of factors. These factors include, but are not limited to,
the Company's strategic objectives, the Company's future plans,
market demand and user acceptance of the Company's products or
services, technological advances, economic trends, the growth of
the trucking services market in China, the Company's reputation and brand, the
impact of industry competition and bidding, relevant policies and
regulations, fluctuations in China's macroeconomic conditions, and the
risks and assumptions disclosed in the Company's reports provided
to the CSRC (China Security Regulatory Commission) For these and
other related reasons, we advise investors not to place any
reliance on these forward-looking statements, and we urge investors
to review the Company's relevant SEC filings for additional factors
that may affect the Company's future results of operations. The
Company undertakes no obligation to publicly revise these
forward-looking statements subsequent to the filing of these
documents as a result of changes in particular events or
circumstances.
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SOURCE MingZhu Logistics Holdings Limited
