Kaixin issues additional 10,000,000 shares tied to Hongkong Taohaoche acquisition after stock slide
KXIN•Additional shares tied to Hongkong Taohaoche acquisition
Kaixin Holdings’ unit agreed to acquire Hongkong Taohaoche, making it an indirect wholly owned subsidiary upon completion.
Seller consideration was set at 10,000,000 newly issued Class A ordinary shares, held in escrow and tied to performance targets.
Kaixin said an additional 10,000,000 Class A ordinary shares will be issued to the seller, also escrowed and tied to six-year performance targets.
Stock decline reduced the consideration’s market value
Kaixin shares fell from above $5 to below $1.5 since the Aug. 26 signing, cutting the consideration’s market value by over 70%.
