On April 23, Gotion High-Tech announced that its holding subsidiary, Jiangsu Gotion, plans to introduce a strategic investor, Nanjing Liuhe District Xinzhi Heneng Equity Investment Partnership, through a capital increase and share expansion. Recently, the company signed a capital increase agreement and a supplementary agreement with Xinzhi Henerg and Jiangsu Gotion in Nanjing, Jiangsu Province. The controlling shareholder and the investor plan to jointly invest in the target company to support its project construction of the New Lithium-Ion Battery (20 GWh) Smart Manufacturing Base Project. Gotion High-Tech will invest a total of Yuan 300 million in two phases, while the investor will invest a total of Yuan 2 billion in two phases.
The company has waived its preemptive right to subscribe to this capital increase. This transaction does not involve related-party transactions nor does it constitute a major asset restructuring. Upon completion of the capital increase, Jiangsu Gotion will remain a subsidiary within the company's consolidated financial statements.
In addition, the agreement stipulates performance commitments and a repurchase clause for the period from 2027 to 2035. If the target company fails to achieve a qualified initial public offering (IPO) or meet its performance targets, the investor has the right to demand a repurchase or cash compensation.
Edited by Cassie Li, lixiangying@mysteel.com
