What's Going On With EHang Stock Wednesday?

EHang Holdings Ltd EH shares are trading higher Wednesday. The autonomous aerial vehicle company announced a $23 million private placement after the close on Tuesday.

What To Know: EHang entered into share subscription agreements, totaling a $23 million private placement, with several strategic investors led by K-Pop producer Lee Soo Man.

The company said it will receive a deposit of 80% of the purchase price from the investors over three business days. The transaction is expected to close in the third quarter. 

The proceeds are expected to be used to enable accelerated strategic plans for technology advancement, business development and post-certification commercial operations.

"The placement and partnership are testaments to the trust and belief in EHang's vision and prospects, propelling the Company into our next phase of growth," said Huazhi Hu, founder, chairman and CEO of EHang.

See Also: Why Carvana (CVNA) Shares Are Driving Higher Wednesday

EH Price Action: EHang shares are up more than 115% year-to-date. The company reported better-than-expected financial results at the end of May. The rally in shares accelerated shortly after and the stock has continued to trend higher.

EHang shares were up 21% at $18.70 Wednesday afternoon, according to Benzinga Pro.

Photo: Jonathan Reichel from Pixabay.