EHang announces $23 million private placement led by Lee Soo Man

EHang Hold­ings today announced that it has entered into share sub­scrip­tion agree­ments for a total of $23 mil­lion from pri­vate place­ment investors led by Lee Soo Man, a South Kore­an music pro­duc­er, entre­pre­neur, and the founder of K‑pop and SM Enter­tain­ment, a South Kore­an lead­ing multi­na­tion­al enter­tain­ment com­pa­ny.

The Com­pa­ny will receive a deposit of 80% of the aggre­gate pur­chase price for the pro­posed place­ment from the investors in three busi­ness days. The trans­ac­tion is expect­ed to close in the third quar­ter of 2023, sub­ject to reg­u­la­to­ry review and cus­tom­ary clos­ing con­di­tions.

The issuance of the Class A ordi­nary shares for the pri­vate place­ment will be made out­side the Unit­ed States in accor­dance with Reg­u­la­tion S under the Secu­ri­ties Act of 1933, as amend­ed. The Class A ordi­nary shares to be issued will be restrict­ed secu­ri­ties and may not be resold with­out reg­is­tra­tion or an exemp­tion from reg­is­tra­tion under US fed­er­al and applic­a­ble state secu­ri­ties laws.

The par­ties will devel­op UAM in Asian Pacif­ic regions lever­ag­ing their com­ple­men­tary strengths. Pro­ceeds from the place­ment will be allo­cat­ed by EHang for work­ing cap­i­tal and gen­er­al cor­po­rate pur­pos­es, enabling accel­er­a­tion of strate­gic plans for tech­nol­o­gy advance­ment, busi­ness devel­op­ment and post-cer­ti­fi­ca­tion com­mer­cial oper­a­tions.

EHang founder and CEO Huazhi Hu com­ment­ed: “I was impressed by Mr Lee’s inter­est in inno­v­a­tive tech­nolo­gies, future air mobil­i­ty, and our autonomous aer­i­al vehi­cles. The place­ment and part­ner­ship are tes­ta­ments to EHang’s vision and prospects, pro­pelling us into our next phase of growth.”

Lee Soo Man added: “I appre­ci­ate EHang’s unwa­ver­ing ded­i­ca­tion to enabling safe, autonomous and eco-friend­ly air mobil­i­ty for the gen­er­al pub­lic, as the first mover and a lead­ing inno­va­tor in the emerg­ing UAM indus­try with great poten­tial.

“I’m excit­ed to embrace oppor­tu­ni­ties and con­tribute to its growth by col­lab­o­rat­ing with EHang as a long-term investor. I look for­ward to the con­ver­gence of cut­ting-edge trans­porta­tion tech­nolo­gies and pop­u­lar cul­ture to cre­ate sus­tain­able val­ue.”

Last month, EHang announced unau­dit­ed finan­cial results for the first quar­ter 2023, show­ing total rev­enues of $3.2 mil­lion, rep­re­sent­ing a growth of 41.6% com­pared to the fourth quar­ter of 2022.

EHang quar­ter­ly rev­enues of USD3.2 mil­lion up 41.6 per­cent on over 60 per­cent gross mar­gin