Tantech Holdings Ltd. Enters into Framework Agreement to Acquire Electric Vehicles Company
LISHUI, China, Jan. 27, 2016 /PRNewswire/ — Tantech Holdings Ltd. (TANH) (“Tantech” or the “Company”), a leading manufacturer of bamboo-based charcoal products, announced today that it entered into a framework agreement (the “Framework Agreement”) to acquire Suzhou E Motors Co., Ltd. (“Suzhou E Motors”), a specialty electric vehicles (“EVs”) manufacturer based in Zhangjiagang City, Jiangsu Province. Suzhou City Deputy Mayor Meijian Xu and Zhangjiagang City Mayor Lifan Zhu, attended a signing ceremony held at Suzhou E Motors’ Zhangjiagang facility on January 27, 2016.
Pursuant to the Framework Agreement executed on January 27, 2016, the Company plans to acquire 100% equity interest in Suzhou E Motors with a combination of cash and restricted shares of the Company’s common stock (the “Transaction”). The closing of the Transaction shall be subject to the terms and conditions set forth in a definitive agreement to be negotiated between the Company and the shareholders of Suzhou E Motors, including Dr. Henglong Chen and Zhangjiagang Light Commercial Vehicles Co., Ltd. who collectively own 100% of the equity interest in Suzhou E Motors. Dr. Henglong Chen is also the controlling shareholder of Zhangjiagang Light Commercial Vehicles Co., Ltd.
Subject to board and regulatory approvals, and other customary closing conditions, the Company expects to close the Transaction in the first quarter of 2016.
“We are thrilled to have the opportunity to join forces with Tantech as both companies see tremendous growth opportunities and possess complementary capabilities in capturing such opportunities in the rapidly evolving Chinese electric vehicle and power battery markets,” said Dr. Henglong Chen, Chairman and Chief Executive Officer of Suzhou E Motors.
“We are excited about the prospect of working with Dr. Henglong Chen, a well-respected EV industry veteran, and his team,” commented Mr. Zhengyu Wang, Chairman and Chief Executive Officer of Tantech, “With annual production capacity of approximately 5,000 electric buses and other special purpose EVs, Suzhou E Motors is one of the leaders in commercial and special purpose EVs in Jiangsu Province with proprietary technologies in electric motor, electrical control systems, battery, and assembly.”
Mr. Wang continued, “The proposed acquisition of Suzhou E Motors aligns with our vision and commitment to transforming the Company from a bamboo-based charcoal products producer to a diversified company along the EDLC Carbon – battery – electric vehicle value chain. We believe tremendous value can be created for our shareholders with the addition of Suzhou E Motors.”