Core Viewpoint - Jiuzi Holdings Inc. has entered into a non-binding letter of intent to acquire Shenzhen Maigesong Electric Technology Co., Ltd., aiming to enhance its capabilities in the new energy vehicle sector through this strategic acquisition [1][2]. Group 1: Acquisition Details - Shenzhen Jiuzi will acquire 100% of Shenzhen Maigesong's equity in exchange for restricted share compensation and will invest RMB 30 million to construct a rechargeable lithium battery production line, with investments split into two stages of RMB 15 million each [2][3]. - The construction of the battery production line will be led by the original shareholders of Shenzhen Maigesong, who will also oversee the immediate commencement of production and sales upon completion [2]. Group 2: Revenue Targets and Earnout Provision - The LOI includes an earnout provision requiring Shenzhen Maigesong to achieve revenue targets of RMB 119.81 million by December 2025 and RMB 504.22 million by December 2026 [3]. - If actual revenue falls below 80% of the targets between 2024 and 2025, the Maigesong Shareholders will provide compensation measures and lose control of Shenzhen Maigesong, emphasizing the importance of achieving these targets for both parties [3]. Group 3: Company Background - Jiuzi Holdings, established in 2017 and headquartered in Hangzhou, operates retail stores under the "Jiuzi" brand, focusing on selling new energy vehicles in third and fourth-tier cities in China, with 51 franchise stores and one company-owned store [4]. - Shenzhen Maigesong specializes in embedded battery control systems and holds nearly a hundred patents, providing products through ODM or SKD models, along with comprehensive technical support [5].
Jiuzi Holdings Enters into a Non-Binding LOI for the Acquisition of Shenzhen Maigesong