Kaixin Auto Holdings (NASDAQ: KXIN) disclosed that it has ended 2020 with the new purchase contract. Kaixin revealed that it has signed a share purchase contract with the stockholders of Haitaoche Limited on Dec 31st, 2020. Both the firms have replaced the binding term sheet deal which they revealed on November 5, 2020, with ‘Share Purchase Deal’.
Following the share deal, Kaixin will take the 100% share capital of Haitaoche. The investors of Haitaoche (the seller) will in return gain a total of 74,035,502 ordinary shares. After signing the acquisition deal with Haitaoche, KXIN is bound to gain the listing approval from Nasqad in a link to this deal because the firm is dealing with the non-Nasdaq entity.
Shares of Kaixin Auto Holdings (NASDAQ: KXIN) soared 8.85% as it gained +0.33 during the pre-market trading session of Monday. In the past 52-weeks of trading, this firm’s share went from the low point around $0.40 to briefly over $13.40. Its shares surged 832.27% from its 52-weeks low and plummeted to -72.16% from its 52-weeks high.
Looking at its profitability, it as return on equity, and assets is 36.20%, and -28.20%. Its Gross Margin is -1.60%, and Operating Margin is -39.90%. Turing our focus on its liquidity, it has a current ratio of 1.00 and a quick ratio of 0.60. This company’s market cap has remained high, hitting $241.29 million at the time of writing.
It is anticipated that the acquisition deal will be finalized by March 31, 2021, after receiving the authorization of Nasdaq and fulfilling other necessary conditions linked with the deal. KXIN shall be obliged to present a report on Form 6-K with SEC.
The report includes the Haitaoche’s verified combined financial reports for the years completed December 2018 and 2019 and unverified combined financial reports for the six months ended June 30, 2020, the share purchase deal, and unverified pro forma.