Aichi, which is mired in the debt crisis, has ushered in the dawn of "resurrection"?
RecentlyKastkingsharky3longcastA reporter from the Daily Economic News consulted the website of the Securities and Exchange Commission (SEC) and learned thatKastkingsharky3longcastOn May 14, New York time, NASDAQ-listed SPAC (Special Purpose Acquisition Company) company Hudson acquired Company I (Hudson Acquisition I Corp).Kastkingsharky3longcast(stock symbol: HUDA) announced that the company has signed a business merger agreement with Aiways Automobile Europe GmbH (hereinafter referred to as Aichi Europe), which means that Aichi Europe may be listed in the United States through a "reverse takeover".
According to the agreement, shareholders of Aichi Europe will receive the newly issued Hudson Acquisition I CorpKastkingsharky3longcast. Common stock, valued at about $400 million. The deal is expected to close around December 31, 2024. "the strategic positioning of the new entity will be to take advantage of our vision and resources in the European electric car market." Alexander Carsten Klose, general manager of Aichi Europe, said.
However, outsiders may be more concerned about whether its debt dispute can be resolved than Aichi's prospects in the European market. A source close to Aichi told reporters that Aichi Europe is nominally a subsidiary of Aichi, but it is relatively independent in terms of operation and finance.
For the latest action of Aichi Europe, the reporter tried to contact Aichi Automobile Co., Ltd. Chairman Guo Chao and Aichi Automobile Co., Ltd. Co-founder Fu Qiang, but as of press time, the other side did not reply.
"backdoor" acquisition of Company I
In fact, Aichi has been trying to raise capital and has previously sought to go public in the form of an IPO. In June 2021, it was revealed that Aichi had planned to land on the Kechuang board, but it ended in vain.
Compared with the traditional IPO model, SPAC model has the advantages of faster time to market, lower cost and simpler process. There are precedents for car companies to go public through the SPAC model, such as Faraday Future and Polar Star are listed on US stocks through the SPAC model.
In 2022, Aichi had planned to reverse backdoor education company Huaxia Burson to be listed in the United States. According to the terms of the letter of intent, the total valuation of Aichi ranges from US $5 billion to US $6 billion. Upon completion of the acquisition, all shares of Aichi will be converted into common shares of the listed company. However, in 2022, it was revealed that Aichi had cash flow problems, followed by arrears of wages, difficulties in repayment by suppliers, as well as problems such as rental of office space, property fees, water and electricity charges, and so on.
"Daily Business News" reporter learned that the "backdoor" Hudson acquisition of Company I, Aichi Europe also needs to pay the corresponding cost of capital.
According to the LETTER AGREEMENT disclosed by the two parties, Aichi Europe will have to pay $2 million (about 14.46 million yuan) to SPAC in three installments before the transaction with SPAC is completed. Among them, before or when the agreement is signed, Aichi Europe will have to pay US $1 million, which is non-refundable. Two other payments of $500000 are to be made at the time of submission of the SEC documents and at the close of the day.
Aichi Europe and its subsidiaries have always sought to build our core strengths to increase shareholder value. The merger with HUDA is another step in this direction and we are pleased to continue to serve our shareholders. " Collison said.
Add 218 million yuan to execution information
Compared with Aichi Europe, Aichi is still mired in a storm of arrears at home.
According to enterprise investigation information, on May 16, Aichi Automobile Co., Ltd. added a piece of information about the person subject to execution, with an execution target of more than 218 million yuan, involving contract disputes related to Jiangling Holdings Co., Ltd.
Prior to this, on May 14, Aichi Automobile Co., Ltd. added a piece of information about the person subject to execution, with an execution target of 47211 yuan. As of the press time, Aichi Automobile Co., Ltd. had a total of 3 pieces of information about people who broke their promises, and the proportion of non-performance was 100%.
"the arrears of wages have not been paid." The person familiar with the matter told the Daily Business News that some of the employees' wages and social security provident funds owed by Aichi last year have not been properly resolved.
The person familiar with the matter told the Daily Business News that Aichi had previously used Aichi European funds when it encountered liquidity problems, and the funding gap may be alleviated as Aichi's European listing approaches.
