LISHUI, China, May 2, 2016 /PRNewswire/ -- Tantech Holdings
Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a leading
manufacturer of bamboo-based charcoal products, announced today
that it entered into a definite purchase agreement (the "Purchase
Agreement") to acquire Suzhou E Motors Co., Ltd. ("Suzhou E
Motors"), a specialty electric vehicles and power batteries
manufacturer based in Zhangjiazhang City, Jiangsu Province. Today's announcement follows
the execution of a framework agreement dated January 27, 2016 by and between the Company and
the shareholders of Suzhou E Motors as previous announced.
Pursuant to the Purchase Agreement executed on May 2, 2016, the Company plans to acquire 100%
equity interest in Suzhou E Motors with a total cash consideration
of RMB 159,000,000 (approximately
$25.2 million) and a share
consideration of 3,250,000 restricted shares of the Company's
common stock. The transaction is expected to be consummated in two
closings. The first closing calls for cash payment of RMB 129,000,000, of which RMB 50,000,000 has been paid by the Company as
advance payment, and share payment of 2,500,000 restricted shares
in exchange for the transfer of 70% equity interest in Suzhou E
Motors to the Company. The second closing calls for cash payment of
RMB 30,000,000 and share payment of
750,000 restricted shares in exchange for the transfer of the
remaining 30% equity interest in Suzhou E Motors. All shares are
subject to a 24-month restriction with 1/3 eligible for resale on
the date of 12 months, 18 months, and 24 months, respectively,
after each closing. The remaining RMB
6,500,000 will be withheld until Suzhou E Motors has
satisfied its obligations as guarantor for a debt currently in
default.
Subject to customary closing conditions, the Company expects the
transaction to be consummated by the end of 2016.
Mr. Zhengyu Wang, Chairman and
Chief Executive Officer of Tantech, commented, "Following months of
due diligence and negotiations following the signing of a framework
agreement on January 27, 2016, we are
extremely pleased to reach this definite Purchase Agreement with
the shareholders of Suzhou E Motors today, which will allow us to
eventually gain 100% control of Suzhou E Motors through a two-step
closing process and inch us closer to transforming Tantech from a
bamboo-based charcoal products producer to a vertically integrated
company along the EDLC Carbon - battery – specialty new energy
vehicle value chain."
Mr. Wang continued, "Suzhou E Motors offers a unique opportunity
for us to tap into the quickly evolving specialty new energy
vehicles market which grew explosively last year. According to data
compiled by China Association of Automobile Manufacturers, new
energy vehicles sales in China
increased by 342% to 331,092 units in 2015 from 74,763 units in
2014. With continuing governmental support and incentive programs,
the strong momentum is poised to extend, benefitting us as we
expand our footprint along the new energy vehicle value chain."
About Suzhou E Motors Co., Ltd.
Established in April 2011 with
registered capital of RMB 100
million, Suzhou E Motors Co., Ltd. ("Suzhou E Motors")
designs, develops, manufactures, and sells electric vehicles
("EVs"), EV powertrain components, parts, and accessories in
China. With manufacturing facility
in Zhangjiagang City, Jiangsu
Province, Suzhou E Motors offers a wide range of EVs,
including passenger cars, patrol vehicles, buses, logistics
vehicles, garbage trucks, and other specialty vehicles with current
annual capacity of approximately 5,000 EVs. For more information
about Suzou E Motors, please visit: http://www.emotorsbus.com.
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui City,
Zhejiang Province, China, Tantech Holdings Ltd., together with
its subsidiaries, develops and manufactures bamboo-based charcoal
products in China and
internationally. It operates through three segments: Consumer
Products, Trading, and Biofuel Energy. The company produces pressed
and formed charcoal briquettes for use in grills, incense burners,
and other applications under the Algold brand. It also offers
Charcoal Doctor branded products, such as air purifiers and
humidifiers, automotive accessories for air purification,
underfloor humidity control, pillows and mattresses, wardrobe
deodorizers, mouse pads and wrist mats, refrigerator deodorants,
charcoal toilet cleaner disks, liquid charcoal cleaners, shoe
insoles, and decorative charcoal gifts. In addition, the Company
provides liquid byproduct consists of bamboo vinegar that is used
in disinfectants, detergents, lotions, specialized soaps, toilet
cleaners, and fertilizers, as well as in various agricultural
applications. Further, it engages in providing bamboo carbon for
use in EDLCs; the production of electric double-layer capacitor
carbon products; and the industrial purchase and sale of rubber.
The Company provides its products for industrial energy
applications, as well as household cooking, heating, purification,
agricultural, and cleaning uses. The company also exports its
bamboo vinegar, bamboo charcoal purification, and EDLC carbon
products. For more information about Tantech Holdings Ltd., please
visit: http://www.tantech.cn/en/index.asp.
Forward-Looking Statements
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
For more information please contact:
Tantech Holdings Ltd.
Ms. Ye Ren
IR Manager
+86-578-261-2869
ir@tantech.cn
Weitian Investor Relations
Ms. Tina Xiao
+1-917-609-0333
tanh@weitian-ir.com
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SOURCE Tantech Holdings Ltd.