Kandi Technologies Corp., a Chinese manufacturer and developer of pure electric vehicles (EVs) and all-terrain vehicles (ATVs), has announced that the company has entered into a share exchange agreement to acquire Yongkang Scrou Electric. Co. Ltd., a Chinese manufacturer of motors and related products for EVs, by acquiring all of the outstanding capital stock of KO NGA Investment Co. Ltd., a British Virgin Islands corporation and the sole owner and shareholder of Scrou.
Scrou is the only operating entity of KO NGA. A closing date has not yet been scheduled.
Under the terms of the agreement, Kandi will exchange a total of 2,354,211 shares of the company's common stock, representing an aggregate exchange purchase price of RMB 50,052,387.66 (approximately $7,952,524) for the 253 shares of KO NGA, representing 100% of the issued and outstanding shares of KO NGA.
The exchange purchase price was based upon the evaluation report. Upon consummation of the share exchange transaction, Scrou will become a wholly owned subsidiary of Kandi.