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EHang Holdings Limited, an autonomous aerial vehicle (AAV) technology platform company, announced it has entered into share subscription agreements for US$23 million private placement with several strategic investors led by Lee Soo Man, a renowned South Korean music producer, entrepreneur, and the founder of K-pop and SM Entertainment, a South Korean leading multinational entertainment company listed in KOSDAQ.
The company will receive a deposit of 80 percent of the aggregate purchase price for the proposed placement from the investors in three business days.
The transaction is expected to close in the third quarter of 2023, subject to regulatory review and customary closing conditions. The issuance of the Class A ordinary shares for the private placement will be made outside the United States in accordance with Regulation S under the Securities Act of 1933, as amended.
The Class A ordinary shares to be issued will be restricted securities and may not be resold without registration or an exemption from registration under U.S. federal and applicable state securities laws.
In addition to the private placement, EHang and Lee Soo Man will collaborate to drive the development of urban air mobility (UAM) business in Asian Pacific regions, leveraging both companies’ complementary strengths.
The gross proceeds from the placement will be allocated by EHang for working capital and general corporate purposes, enabling acceleration of strategic plans for technology advancement, business development and post-certification commercial operations.