Kaixin Auto Holdings announces approval by NASDAQ of Haitaoche acquisition

Rhea-AI Summary

Kaixin Auto Holdings (NASDAQ: KXIN) has received NASDAQ approval for the acquisition of 100% share capital of Haitaoche Limited, following a share purchase agreement signed on December 31, 2020. The acquisition is subject to closing conditions, including shareholder approval of an amendment to the company's articles of association. The company anticipates the deal will finalize in May 2021, aiming to strengthen its position in China's premium used car market, leveraging both online and offline presence.

Positive

• Acquisition of Haitaoche Limited will enhance Kaixin's dealership network.
• Strengthens market presence in the growing premium used car segment in China.
• The anticipated closing of the acquisition in May 2021 suggests momentum in strategic growth.

Negative

• Closing subject to shareholder approval introduces uncertainty.
• Potential integration challenges post-acquisition may affect operational efficiency.

BEIJING, April 15, 2021 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that it received the approval by NASDAQ Stock Market for the acquisition (the “Acquisition”) of 100% of the share capital of Haitaoche Limited pursuant to a share purchase agreement entered into on December 31, 2020. Subject to certain other closing conditions, including the shareholder approval of the amendment to the Company’s article of associations, the Company anticipates the Acquisition to be closed in May, 2021.

About Kaixin Auto Holdings

Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence, Kaixin has transformed from a tech-enabled financing platform into a nationwide dealer network that combines its own and affiliated dealers as well as value-added services.

Safe Harbor Statement

This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook for 2021 and quotations from management in this announcement, as well as Kaixin’s strategic and operational plans, contain forward-looking statements. Kaixin may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the social networking site market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with used auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Kaixin Auto Holdings 
Investor Relations
Email: ir@kaixin.com 

SOURCE: Kaixin Auto Holdings

FAQ

What is the significance of Kaixin Auto's acquisition of Haitaoche Limited?

The acquisition aims to enhance Kaixin's presence in the premium used car market in China, potentially leading to increased revenue and market share.

When is the expected closing date for the acquisition by Kaixin Auto?

Kaixin Auto anticipates closing the acquisition in May 2021, pending necessary shareholder approvals.

What conditions must be met for the Kaixin Auto acquisition to close?

The acquisition is subject to shareholder approval of amendments to the company's articles of association and other closing conditions.

How might the acquisition impact Kaixin Auto's business operations?

The acquisition could enhance Kaixin's dealership network and customer reach, but may also pose integration challenges that could affect efficiency.