EHang announces $23m private investment led by Korean music producer
EHang has signed share subscription agreements valued at $23m with several investors lead by South Korean music producer, Lee Soo Man.
The entrepreneur and founder of K-pop and SM Entertainment, a KOSDAQ-listed South Korean leading multinational entertainment company, will also work with EHang to drive development of UAM in the Asia-Pacific region.
EHang will initially receive an 80% deposit of the aggregate purchase price, whilst the transaction is expected to close in the third quarter of 2023. The company also confirmed issuance of the Class A ordinary shares for the private placement will be made outside the US in accordance with Regulation S under the Securities Act of 1933, as amended.
“I appreciate EHang’s unwavering dedication to enabling safe, autonomous and eco-friendly air mobility for the general public, as the first mover and a leading innovator in the emerging UAM industry with great potential,” said Man. “I’m excited to embrace opportunities and contribute to its growth through investing and collaborating with EHang as a long-term investor. I look forward to the convergence of cutting-edge transportation technologies and popular culture to create sustainable value, and I’m proud to be part of it.”
The proceeds from the placement will be allocated by EHang for working capital and general corporate purposes. This should accelerate strategic plans for technology advancement, business development and post-certification commercial operations, said the Chinese OEM.
Huazhi Hu, EHang’s founder, chairman and CEO, added: “I was impressed by Mr. Lee’s interest and passion towards innovative technologies, future air mobility, and our autonomous aerial vehicles. We are thrilled to have long-term strategic investors and partners, such as Mr. Lee, who share the same values and commitment in our journey. The placement and partnership are testaments to the trust and belief in EHang’s vision and prospects, propelling the Company into our next phase of growth.”