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Kandi Technologies Announces Entry Into Agreement for Registered Direct Placement of $71M of Common Stock And Warrants At $17.20/Share

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Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq: KNDI), today announced that it has entered into a securities purchase agreement with certain institutional investors for a registered direct placement of $71 million of common stock at a price of $17.20 per share. The Company will issue a total of 4,127,908 shares of common stock to the institutional investors. As part of the transaction, the Company will also issue to the investors warrants ("Warrants") for the purchase of up to 743,024 shares of common stock at an exercise price of $21.50 per share, which Warrants will have a term of 17 months from the date of issuance. Any investor that invests more than $30 million in the initial offering of shares and Warrants will have an option to purchase its pro rata share of up to $30 million of additional shares for a period commencing after the initial closing date and ending on November 17, 2014, and investors exercising such option will also receive Warrants for the purchase of an aggregate of up to 313,954 shares of our common stock. Assuming that the investors exercise all of their options, the total gross proceeds of the offering would be $101 million.

The net proceeds from this offering will be used for general working corporate purposes. The completion of the placement is expected to occur on or about September 4, 2014, subject to the satisfaction of customary closing conditions.

FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.

These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement related to the offering will be filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

For further details of this transaction, please see the Form 8-K to be filed with the SEC.

Posted-In: News Financing Press Releases

 

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