Autozi Internet Technology (Global) Ltd. Announces Waiver of IPO Lock-up Restriction for its Controlling Shareholder to Enable Share Transfer to Two Consulting Service Providers
Autozi Internet Technology (Nasdaq: AZI) announced that Qirun Investment, owned by CEO Dr. Houqi Zhang, will transfer 2.8 million shares to two consulting firms: 2 million shares to Leisure Stream and 800,000 shares to CG Summit Inc. The transfer comes after Kingswood Capital Partners waived lock-up restrictions, effective December 3, 2024. Both receiving firms will enter new 6-month lock-up agreements lasting until February 27, 2025. The share transfers are compensation for strategic consulting services focused on U.S. market analysis, business development, and auto parts supply chain connections.
Autozi Internet Technology (Nasdaq: AZI) ha annunciato che Qirun Investment, di proprietà del CEO Dr. Houqi Zhang, trasferirà 2,8 milioni di azioni a due società di consulenza: 2 milioni di azioni a Leisure Stream e 800.000 azioni a CG Summit Inc. Il trasferimento avviene dopo che Kingswood Capital Partners ha rinunciato alle restrizioni di lock-up, con effetto dal 3 dicembre 2024. Entrambe le società riceventi entreranno in nuovi accordi di lock-up di 6 mesi, della durata fino al 27 febbraio 2025. I trasferimenti di azioni sono una forma di compenso per servizi di consulenza strategica focalizzati sull'analisi del mercato statunitense, lo sviluppo commerciale e i collegamenti nella catena di approvvigionamento dei pezzi di ricambio per auto.
Autozi Internet Technology (Nasdaq: AZI) anunció que Qirun Investment, propiedad del CEO Dr. Houqi Zhang, transferirá 2.8 millones de acciones a dos firmas de consultoría: 2 millones de acciones a Leisure Stream y 800,000 acciones a CG Summit Inc. La transferencia se produce después de que Kingswood Capital Partners renunciara a las restricciones de lock-up, efectivas a partir del 3 de diciembre de 2024. Ambas firmas receptoras firmarán nuevos acuerdos de lock-up de 6 meses que durarán hasta el 27 de febrero de 2025. Las transferencias de acciones son una compensación por servicios de consultoría estratégica enfocados en el análisis del mercado estadounidense, el desarrollo empresarial y las conexiones en la cadena de suministro de piezas de automóviles.
Autozi Internet Technology (Nasdaq: AZI)는 CEO Dr. Houqi Zhang이 소유한 Qirun Investment가 두 개의 컨설팅 회사에 280만 주를 이전한다고 발표했습니다: Leisure Stream에 200만 주, CG Summit Inc.에 80만 주입니다. 이 이전은 Kingswood Capital Partners가 2024년 12월 3일부터 시행되는 락업 제한을 면제한 후 이루어집니다. 두 수령 회사는 2025년 2월 27일까지 지속되는 새로운 6개월 락업 계약을 체결할 것입니다. 주식 이전은 미국 시장 분석, 사업 개발 및 자동차 부품 공급망 연결에 초점을 맞춘 전략적 컨설팅 서비스에 대한 보상입니다.
Autozi Internet Technology (Nasdaq: AZI) a annoncé que Qirun Investment, détenu par le PDG Dr. Houqi Zhang, transférera 2,8 millions d'actions à deux sociétés de conseil : 2 millions d'actions à Leisure Stream et 800 000 actions à CG Summit Inc. Le transfert fait suite à la renonciation de Kingswood Capital Partners aux restrictions de lock-up, qui entrera en vigueur le 3 décembre 2024. Les deux sociétés réceptrices entreront dans de nouveaux accords de lock-up de 6 mois, qui dureront jusqu'au 27 février 2025. Les transferts d'actions sont une compensation pour des services de conseil stratégique axés sur l'analyse du marché américain, le développement commercial et les connexions dans la chaîne d'approvisionnement des pièces automobiles.
Autozi Internet Technology (Nasdaq: AZI) gab bekannt, dass Qirun Investment, im Besitz von CEO Dr. Houqi Zhang, 2,8 Millionen Aktien an zwei Beratungsunternehmen übertragen wird: 2 Millionen Aktien an Leisure Stream und 800.000 Aktien an CG Summit Inc. Die Übertragung erfolgt, nachdem Kingswood Capital Partners die Lock-up-Beschränkungen mit Wirkung vom 3. Dezember 2024 aufgehoben hat. Beide empfangenden Unternehmen werden neue 6-monatige Lock-up-Vereinbarungen abschließen, die bis zum 27. Februar 2025 dauern. Die Aktienübertragungen sind eine Vergütung für strategische Beratungsdienste, die sich auf die Marktanalyse der USA, die Geschäftsentwicklung und die Verbindungen in der Lieferkette von Autoteilen konzentrieren.
- Strategic expansion into North American market through consulting partnerships
- No direct financial impact on company's operations or balance sheet as shares are from CEO's personal holdings
- 2.8 million shares being transferred could signal potential future selling pressure after lock-up expiration
- Early lock-up waiver might raise concerns about insider stock retention
Insights
This share transfer arrangement represents a significant development, involving 2.8 million shares of AZI stock being transferred from the CEO's investment vehicle to consulting firms. The structure suggests a creative way to acquire strategic services without direct cash expenditure, using personal shareholdings as currency. While the lock-up waiver maintains market stability by transferring the same restrictions to new holders, the deal's timing, just months after IPO, warrants attention.
The transaction value, based on current market prices, represents substantial compensation for consulting services, indicating high strategic importance. However, this arrangement could potentially impact share price dynamics once the lock-up period expires in February 2024. The focus on North American market expansion signals ambitious growth plans, though execution risks in a new market should be carefully considered.
The strategic consulting agreements reveal Autozi's methodical approach to North American market entry. The engagement of two specialized firms - one for financial analysis and market research, another for business development and talent acquisition - suggests a comprehensive market penetration strategy. This structured approach to international expansion, particularly the focus on building relationships with U.S. auto parts supply chain companies and local dealerships, could provide valuable competitive advantages.
The use of equity as compensation aligns consultants' interests with long-term company success, though it also indicates potential cash conservation strategies. The timing and scope of these partnerships suggest significant groundwork for future expansion, making this a pivotal strategic move despite being structured through the CEO's personal holdings.
Kingswood Capital Partners, LLC ("Kingswood"), the underwriter of the Company's recent initial public offering, is waiving a lock-up restriction on 2,800,000 shares held by Qirun to allow the Share Transfers, effective on December 3, 2024. On the same date, each of Leisure Stream Limited and CG Summit Inc. will enter into a lock-up agreement with Kingswood, substantially similar to the terms previously agreed upon with Qirun, under which they committed not to sell, transfer, or otherwise dispose of, directly or indirectly, any shares of the Company acquired through the Share Transer for a period of six months from August 27, 2024, the date of the final prospectus relating to our initial public offering. The Share Transfers are expected to be completed soon.
Dr. Zhang commented, "These strategic partnerships represent a personal commitment to exploring new opportunities that could, in the long term, enhance Autozi's presence and capabilities in the global market. By leveraging my personal resources to engage with experienced consulting firms, I aim to lay the groundwork for potential expansion into the North American market. This initiative allows us to assess the landscape without impacting Autozi's current operations or financial standing, ultimately aligning with our goal of delivering value to our shareholders."
Specifically, Leisure Stream Limited agreed to provide strategic consulting services to Qirun, including financial analysis and market research related to the U.S. market, in exchange for 2,000,000 shares of Autozi's common stock. CG Summit Inc. agreed to offer business development and talent acquisition services to Qirun Investment Co., Ltd., focusing on introductions to
About Autozi Internet Technology (Global) Ltd.
Autozi Internet Technology (Global) Ltd. is one of the leading and fast-growing lifecycle automotive service providers in China. Autozi, founded in 2010, provides high-quality, affordable and professional one-stop automotive products and services through online and offline channels nationwide. Our business segments include (i) new car sales, (ii) auto parts and auto accessories sales, and (iii) automotive insurance related services. Leveraging our online supply chain cloud platform, SaaS platforms, and the network of multiple-brand-service (MBS) stores, we have established an ecosystem of lifecycle automotive services by connecting automotive manufacturers, auto parts manufactures, and insurance companies with MBS stores and various automotive owners. For more information, visit the Company's website at https://www.autozi.com/en/investor.
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 and 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. 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. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or 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, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
Contact Information
The Blueshirt Group
Jack Wang
Email: Jack@blueshirtgroup.co
View original content:SOURCE Autozi Internet Technology (Global) Ltd.
FAQ
How many shares of AZI stock are being transferred by Qirun Investment?
When does the lock-up period end for AZI shares transferred to the consulting firms?
What services will the consulting firms provide to AZI in exchange for shares?
