Ecarx announces $45.6M investment from Geely Holding Group

Ecarx (ECX) announced that it has entered into a subscription agreement with Geely Investment Holding on January 8th. Under the terms of the agreement, Geely Holding has agreed to subscribe for and purchase from the company, through a private placement, a total of 27,297,002 newly issued Class A ordinary shares of the company at a price of $1.67 per ordinary share, for a total purchase price of $45.6M. The per share price is equal to the volume-weighted average price of the ordinary shares of the Company on Nasdaq for the 20 consecutive trading days immediately preceding the date of the agreement. The closing of the private placement is subject to customary closing conditions and is expected to take place in the near future. The ordinary shares to be purchased by Geely Holding in with this private placement will be subject to a six-month lock-up period with certain customary exceptions. Ecarx intends to use the net proceeds from the offering to accelerate the development of its cutting-edge vehicle hardware and software solutions and scale their deployment to fuel its global expansion, while further strengthening its financial position and liquidity.