Automotive technology provider Ecarx Holdings has signed a subscription agreement with Chinese automotive conglomerate Geely Holding for a $45.6m strategic investment.
Under the terms of the agreement, Geely will invest in Ecarx through a private placement.
The investor has agreed to subscribe for and purchase approximately 27.29 million newly issued Class A ordinary shares at a price of $1.67 per share.
The issue price reflects the volume-weighted average price of Ecarx’s ordinary shares on Nasdaq over the 20 consecutive trading days immediately prior to the signing of the agreement.
Completion of the private placement remains subject to customary closing conditions and is expected to occur in the near term.
The Class A ordinary shares issued to Geely will be subject to a six-month lock-up period, subject to certain customary exceptions.
Ecarx CEO and chairman Ziyu Shen said: “Following the two project wins from Volkswagen Group last year and our deepened strategic partnership with Lotus Tech, this investment will support the build out of our R&D hub in Germany and infrastructure across key growth markets in South America and Southeast Asia, providing us with the R&D, delivery, and supply chain capabilities to fuel our global expansion.”
Ecarx said the net proceeds from the transaction will be used to accelerate the development of its vehicle hardware and software offerings.
The company also plans to expand global deployment as part of its growth strategy while strengthening its financial position and liquidity.
Following completion of the private placement, Ecarx will issue new Class A ordinary shares to Geely Holding as part of the transaction.
Geely Holding executive vice chairman Daniel Donghui Li added: “Ecarx has established itself as a key technology partner in the global automotive industry, and this investment underscores Geely’s continued confidence in the company’s long-term vision and technological capabilities.”
In October last year, Ecarx signed a new partnership agreement with Victory Giant Technology Company (VGT) as it sought to scale up its capabilities to meet growing global demand for high-performance computing platforms for next-generation vehicles.
“Ecarx to receive $45.6m investment from Geely Holding” was originally created and published by Just Auto, a GlobalData owned brand.
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