EHang Holdings $EH stock is a confirmed turnaround stock as of January 29, 2023, after its Resurrection CrossWhen the 50 day moving average crosses above the 200 day moving average, it is called a Resurrection Cross. Conversely, when the 50 day moving average crosses below the 200 day mov... a week ago. The stock is in a technical strong uptrend.
EHang Announces Strategic Partnership and Investment with Qingdao West Coast New Area
EHang Holdings announced a strategic alliance with Qingdao West Coast New Area, one of Shandong province’s national new areas, on December 23, 2022. This partnership includes a legally binding equity investment of US$10,000,000 as well as the possibility of future investments totaling US$10,000,000.
EHang intends to expand its AAV business through this strategic partnership, as well as the urban air mobility (UAM) market and industry in Qingdao, with the aim of establishing Qingdao as a top-tier UAM application demonstration area. EHang also plans to set up a national firefighting business center and a regional headquarters for Northeast Asia in the Qingdao West Coast New Area. The Qingdao West Coast New Area will make it easier for local governments to use the full range of EHang’s products while also offering extensive assistance to the company’s local business operations, including salesThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... and services, production, and infrastructure building.
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 purposes.
Subject to receiving certain investment-related regulatory approvals and clearances in China and satisfying other customary closing conditions, the private placement is anticipated to close in the first quarter of 2023. The investor has made the RMB equivalent of the purchase price available to the company as interim funding free of charge pending the private placement’s closing, and the company intends to use these funds for working capital and other general corporate purposes up until closing. Regulation S of the Securities Act of 1933, as amended, will be relied upon and adhered to in the issuance of the Class A ordinary shares.
“EHang is a global leader in the eVTOL sector ranging from hardware to software. Its AAV products and fleet operations are fully in line with Qingdao’s development requirements for smart, eco-friendly and highly efficient UAM solutions. We believe it will be a ‘win-win’ cooperation with our joint efforts to advance high-end industries and aviation sectors in Qingdao and to create a beneficial UAM industrial ecosystem,” said Guilong Shi, Deputy Director of the Administrative Committee of Qingdao West Coast New Area.
Xin Fang, Chief Operating Officer of EHang, commented, “This strategic investment and business partnership is a significant milestone for EHang’s long-term growth. With more funding and strong product demands in the Qingdao local market, which is estimated to reach the level of RMB100 million in two years, EHang expects to accelerate the development of Qingdao’s AAV industry through new aviation business and low-altitude economy. We believe our cooperation will propel Qingdao to be a world-class, innovative UAM application demonstration area with comprehensive AAV industrial chains and commercial operations.”
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