EHang Announces Strategic Partnership and Investment with Qingdao West Coast New Area

  • Reading Time:4Minutes

GUANGZHOU, China, Dec. 23, 2022 (GLOBE NEWSWIRE) — EHang Holdings Limited (Nasdaq: EH) (“EHang” or the “Company”), the world’s leading autonomous aerial vehicle (“AAV”) technology platform company, today 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 US$10,000,000 equity investment and a potential additional investment of US$10,000,000 in the future.

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 purposes.

The private placement is expected to close in the first quarter of 2023, subject to the receipt of certain investment-related regulatory approvals and clearances in China and the satisfaction of other customary closing conditions. Pending the closing of the private placement, the investor has made available to the Company the RMB equivalent of the purchase price as interim funding at no cost, and the Company intends to use such funds for its working capital and general corporate purposes until closing. The issuance of the Class A ordinary shares will be made in reliance on, and in compliance with Regulation S under the Securities Act of 1933, as amended.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

In addition, Qingdao West Coast New Area and/or certain of its affiliates have indicated an interest in subscribing for additional Class A ordinary shares of the Company for an aggregate purchase price of up to US$10,000,000, on such terms and conditions (including subscription price) as the parties shall further discuss and agree upon in the future. However, because indications of interest are not binding agreements or commitments to purchase, Qingdao West Coast New Area and/or certain of its affiliates may determine to purchase fewer securities than they indicate an interest in purchasing or not to purchase any securities at all.

“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.”

Source: ehang.com

Recent article

EVTOL & VTOL News & Articles

The flying ambulance arrives at lightning speed

EVTOL & VTOL News & Articles

The electric car revolution could continue in the air

EVTOL & VTOL News & Articles

Unmanned aerial taxis flew in a unique formation

Electric airplane News & Articles

NASA’s Innovations: Soaring into an Electrified Flight Future

EVTOL & VTOL News & Articles

Could eVTOLs and Air Taxis Replace Public Transport ?

Additional aircraft News & Articles

The Morphobot: An Innovation in Multimodal Robotics

News & Articles Points of interest

The Dawn of AI Air Travel: Airbus and its Vision for Autonomy

Air taxi News & Articles

Volocopter’s High-Flying Ambitions for the Olympics

News & Articles Propulsion-Fuel

The Horizon of Aviation: Airbus’ Vision for 2035 and Beyond

EVTOL & VTOL News & Articles

A Shift in Aviation Licensing and Training

Drones News & Articles

Russia’s Path to Drone Supremacy

Air taxi News & Articles

Israel’s Pioneering Venture into Drone Transport

Air taxi News & Articles

More efficient air taxis in the future

Air taxi News & Articles

Testing of perhaps the most promising air taxi begins

Additional aircraft News & Articles

Navigating the Future: Autonomous Helicopters Soar High

EVTOL & VTOL News & Articles

Embracing the Future: Seoul’s Leap into Urban Air Mobility
More articles you may be interested in...

Air taxi News & Articles

The Coming Electric Air Taxi Revolution: Competing with Train Tickets ?

The Dutch company, Electron Aviation, is making a bold promise that is set to disrupt.......... READ MORE

News & Articles Propulsion-Fuel

Unveiling the Whisper of Innovation: CycloTech’s Exploration into CycloRotor Noise Levels

In the fast-paced realm of aeronautical engineering, the introduction of CycloRotors has heralded a paradigm.......... READ MORE

Points of interest

Sailing the Skies in Style: Airbus’s Novel Vision for Air Travel

Navigating the dawn of a fresh chapter in aviation, Airbus recently shared its audacious plans.......... READ MORE

Drones News & Articles

Boosting Agriculture: A Drone Revolution Awaits in Budapest

The stage is set in Hungary, as it stands on the brink of an exciting.......... READ MORE

News & Articles Propulsion-Fuel

Embracing the Future with Rolls-Royce’s Revolutionary UltraFan Engine

Just when you thought the apex of innovation had been reached, Rolls-Royce challenges the notion.......... READ MORE

Air taxi News & Articles

Testing of perhaps the most promising air taxi begins

For some of us, the very idea of an air taxi evokes scenes straight out.......... READ MORE

Additional aircraft News & Articles

Navigating the Future: Autonomous Helicopters Soar High

Unmanned helicopters are no longer a concept in some futuristic Sci-Fi novel. They're here, revolutionizing.......... READ MORE

EVTOL & VTOL News & Articles

Embracing the Future: Seoul’s Leap into Urban Air Mobility

In an audacious move to revolutionize its transport system, Seoul - the bustling South Korean.......... READ MORE