Kandi Technologies Acquires Jiangxi Huiyi For $7.7M

Kandi Technologies Group Inc KNDI has acquired cell producer Jiangxi Province Huiyi New Energy Co Ltd (Jiangxi Huiyi) for $7.7 million in cash.
Jiangxi produces approximately 90 million 18650 lithium-ion rechargeable cells annually.
Kandi expects to grow its cell business by using the newly acquired technology to address new applications, eventually including EV battery packs.
The deal is expected to be completed no later than thirty business days and no later than three years after signing.
Kandi may issue up to 858,770 shares of registered stock each year for the next three years to the shareholders of Jiangxi Huiyi, conditioned on Jiangxi Huiyi achieving no less than $2.3 million net income for each of the following three years.
Jiangxi Huiyi expects to increase its targeted net profits to $5.4 million in 2023 and $15.4 million by 2025.
Cash and equivalents of Kandi as of March 31, 2021, totaled $146.7 million.
Price action: KNDI shares are trading higher by 1.87% at $5.44 on the last check Monday.