MingZhu Logistics To Acquire CheYi Network For Aggregate $29.4M

MingZhu Logistics Holdings Ltd YGMZ has entered a Share Purchase Agreement to acquire 100% of the equity interest of Cheyi (BVI) Limited for a total consideration of ~$29.47 million.
Cheyi operates its business through its subsidiary Zhejiang CheYi Network Technology Co., Ltd., an integrated online car-hailing and driver management services company.
MingZhu expects the acquisition to offer customers additional platform enhancements and directly fits its acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.
The consideration consisted of ~3.19 million fully paid MingZhu Logistics ordinary shares priced at $4 per share (total ~$12.76 million) and payment of $2 million at closing.
The consideration also consisted of Year-2021 earnout payment of ~$8.83 million and Year-2022 earnout payment of ~$5.88 million if the Cheyi BVI's audited net income for its fiscal year 2021 and 2022 is no less than $3 million respectively.
MingZhu Logistics held cash and equivalents of $14.2 million as of June 30, 2021.
The company expects to close the transaction to close by December 31, 2021.
Price Action: YGMZ shares are trading higher by 26.7% at $2.23 during the pre-market session on Wednesday.