EHang, a leading autonomous aerial vehicle company, has announced a private placement totaling $23 million. The placement involves several strategic investors, with Mr. Lee Soo Man, a well-known South Korean music producer and entrepreneur, leading the group. Mr. Lee Soo Man is the founder of K-pop and SM Entertainment, a leading multinational entertainment company listed in KOSDAQ.
The transaction is expected to close in the third quarter of 2023, subject to regulatory review and customary closing conditions. The issuance of Class A ordinary shares for the private placement will comply with Regulation S under the Securities Act of 1933, and the shares will be restricted securities, subject to registration or 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 the Asian Pacific regions, leveraging their complementary strengths.
The proceeds from the private placement will be allocated by EHang for working capital and general corporate purposes. This funding will support the acceleration of strategic plans for technology advancement, business development, and post-certification commercial operations.
Mr. Huazhi Hu, EHang's Founder, Chairman, and CEO, expressed his excitement about the investment and partnership, emphasizing the shared values and commitment to innovative technologies and future air mobility. Mr. Hu stated that the placement and partnership represent a significant milestone for EHang and will propel the company into its next phase of growth.
Mr. Lee Soo Man, the lead investor, also shared his enthusiasm and positive outlook for the future. He praised EHang's dedication to safe, autonomous, and eco-friendly air mobility and recognized the company as a first mover and leading innovator in the emerging UAM industry. Mr. Lee Soo Man expressed his eagerness to contribute to EHang's growth and looked forward to the convergence of cutting-edge transportation technologies and popular culture to create sustainable value.
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