EHang has announced its strategic partnership with Qingdao West Coast New Area, one of China’s national new areas in Shandong province. This partnership comes with a binding USD10 million equity investment and a potential additional investment of USD10 million in the future.
According to a company press release:
“Through this strategic partnership, EHang plans to develop its AAV business and the urban air mobility (“UAM”) industry and market in Qingdao with the goal to make Qingdao a world-class UAM application demonstration area. Additionally, EHang intends to establish a Northeast Asia regional headquarters as well as a national firefighting business center in Qingdao West Coast New Area. Qingdao West Coast New Area will facilitate the local governments’ applications of EHang’s full range of products while providing comprehensive support to the Company’s local business operations, sales and services, production and infrastructure construction, among other things.
“As part of this partnership, Qingdao West Coast New Area’s investment arm will initially invest a total of US$10,000,000 in the Company through a private placement of newly issued Class A ordinary shares of the Company. The purchase price for each Class A ordinary share is calculated based on the average of the closing sales prices of the Company’s American depositary shares (“ADS”) for the 30 trading days immediately preceding the signing of the share subscription agreement on December 21, 2022. Each ADS represents two Class A ordinary shares of the Company. The Company intends to use the proceeds for its working capital and general corporate purpose.”
For more information