JINHUA, CHINA- December 27, 2010 – (Motor Sports Newswire) – Kandi Technologies, Corp. (NASDAQ: KNDI) (“Kandi” or the “Company”), a leading Chinese exporter of all terrain recreational vehicles, developer of the “CoCo” all electric Low Speed Vehicle (LSV), and a leader in Electric Vehicle (EV) development in China, announced today it has successfully completed its previously announced sale to several institutional investors of $16.6 million of common stock, at a price of $5.50 per share, in a registered direct offering. Institutional investors have been issued 3,027,272 common shares together with warrants to purchase up to 1,210,912 shares of common stock which, if fully exercised for cash, would provide an additional $7.6 million in gross proceeds to the Company. The three-year warrants have an exercise price of $6.30 per share and are immediately exercisable. Net proceeds from the offering will be used for general working capital purposes.
The securities were offered and sold pursuant to the Company’s effective shelf registration statement and a prospectus supplement filed with the Securities and Exchange Commission.
Positioned To Pursue Goals
Mr. Xiaoming Hu, Chairman and CEO of the Company, stated, “With the completion of this offering, we believe Kandi is in a stronger financial position that will better enable us to pursue our goals of becoming a leader in pure EV sales in China. While developing our EV business, we will continue to expand our position as a leading manufacturer and exporter worldwide of all terrain recreational vehicles.”
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
About Kandi Technologies, Corp.
Kandi Technologies, Corp. (NASDAQ: KNDI) ranks as one of the largest manufacturers and exporters of go-karts in China, making it a world leader in the production of this popular recreational vehicle. It also ranks among the leading manufacturers in China of all terrain vehicles (ATVs), and specialized utility vehicles (UTVs), especially for agricultural purposes. Recently, it introduced a second generation high mileage, two seater three-wheeled motorcycle. A major company focus also has been on the manufacture and sales of highly economical, beautifully designed, all electric super mini cars for neighborhood driving and commuting. Available in the U.S., convertible and hardtop models of the CoCo travel up to 60 miles at speeds reaching 25mph on a six hour charge. In China, the government recently approved the sale there of Kandi EVs. These include the lithium ion powered KD5011, which is eligible for national subsidies of up to RMB 60,000 per vehicle in all EV “pilot” cities throughout China. Also, the KD5010, which is now being sold in Jinhua City, where the city’s first “Battery Charging Farm” and “Express Change” battery station has opened. This and planned additional “Express Change” battery stations are operated by a pioneering three partner joint venture in which Kandi holds a 30% interest with China’s leading battery maker, Tianneng Power International, Ltd., and Jinhua Bada Group, a subsidiary of State Grid Power Corporation, China’s largest power company. Participation in China’s first Electric Vehicle (EV) battery replacement services company will mean the development of two revenue streams for Kandi — one from the sale of its battery-powered vehicles and the other from a share of the battery rental, replacement, charging and recycling fees generated by the new joint venture. Kandi believes that battery powered, electric super minis and related services will become the Company’s largest revenue and profit generator. The Company’s products can be viewed at http://www.kandivehicle.com. Its corporate/ir website is http://www.chinakandi.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.
SOURCE: Kandi Technologies, Corp.