Kaixin Holdings (NASDAQ:KXIN) shares jumped 21.61% in after-hours trading on Tuesday, reaching $3.77.
Check out the current price of KXIN stock here.
The stock closed Tuesday's regular session at $3.10, down 25.48%, according to Benzinga Pro data.
Acquisition Agreement Details
The after-hours surge came after the company filed a Form 6-K with the Securities and Exchange Commission announcing a securities purchase agreement.
See Also: Why Powell Max (PMAX) Stock Traded 46% Higher After Hours?
According to the filing, Kaixin’s wholly owned subsidiary Zhejiang Kaixin Auto Co., Ltd. will acquire 100% equity in the target company, Zhejiang Ordinary Smile Auto Sales Co., Ltd., from sole shareholder Fangle Lai.
The target company operates in automobile wholesale and retail business.
Stock-Based Consideration Structure
Kaixin will issue up to $15 million worth of newly issued Class A ordinary shares as consideration.
The shares will be held in escrow by AUTOA2A, LTD. and released subject to meeting annual performance targets over five years.
Performance Milestones
The target company faces rising annual revenue requirements, from RMB 665 million ($94.2 million) in the first year to RMB 974 million ($137.9 million) by the fifth year, according to the SEC filing.
One-fifth of the consideration shares will be released each year upon achieving the corresponding audited revenue target.
Stock Performance
KXIN shares are down 93.42% year to date.
The stock of the Chinese holding company has a market capitalization of $3.53 million and a 52-week trading range of $2.94 to $75.
Read Next:
Photo Courtesy: Sai Chan on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
