Chijet Motor Company Increases Share Issuance for Investors

Chijet Motor Company's Recent Developments

Chijet Motor Company, Inc. (NASDAQ: CJET) is making waves in the automotive industry with its exciting announcement regarding the issuance of ordinary shares to its contingent value rights (CVR) holders. This move is significant as it reflects Chijet's commitment to its investors and their position within the company's growth trajectory.

Details of Share Issuance

According to the announcement, Chijet plans to issue a total of 640,850 ordinary shares, with a nominal par value of US$0.003, to those shareholders who hold the contingent value rights as of the recent cutoff date. This distribution will be conducted on a pro rata basis, which means that the ordinary shares will be allocated in proportion to the number of CVRs held by each qualifying investor.

This issuance is particularly noteworthy because it is being undertaken due to certain earnout milestones outlined in a previous Business Combination Agreement (BCA). Although some milestones were not achieved in the last calendar year, the company remains proactive in ensuring a fair distribution of shares. In total, the company will distribute 640,850 Ordinary Shares following the cancellation of equivalent shares by two of its major shareholders, Euroamer Kaiwan Technology Company Limited and Chijet Holdings Limited.

Understanding Contingent Value Rights

For those unfamiliar with contingent value rights, these are financial instruments designed to provide holders with a return based on the performance of a company beyond the time of purchase. In this case, each CVR held by investors allows them to receive approximately 0.492694 Ordinary Shares, subject to rounding rules for fractional shares.

Impact on Shareholders

This share issuance is likely to enhance the equity stake of CVR holders in Chijet, underscoring the company’s approach to shareholder involvement and return on investment. Rounding down to the nearest whole share for those entitled to fractions underscores the company’s effort to streamline the distribution process while maintaining clarity and simplicity for its investors.

Chijet’s Ongoing Commitment to Innovation

Chijet is not only focused on serving its current investors but is also dedicated to the innovation and development of both traditional fuel vehicles and new energy vehicles (NEVs). The company’s modern manufacturing capabilities and efficient supply chain management are pivotal in offering high-performance vehicles at competitive prices. Their ambitious plans include the establishment of a new factory dedicated to NEV production, which is expected to bolster the company's position in the growing electric vehicle market.

A Peek into the Future

The vision for Chijet Motor Company reflects a broader ambition to adapt to changing market conditions while maintaining robust shareholder engagement. The automotive landscape is rapidly evolving, influenced by shifts towards sustainable energy solutions and advancements in technology. As such, the company is preparing itself to meet new challenges head-on, ensuring that they remain competitive and innovative in a demanding industry.

Contact Information

For further details on this development or any other inquiries, interested parties can reach out to Chijet at the following address:
2888 Donshan Street
Gaoxin Automobile Industrial Park
Jilin City, JL. P.R. China
Phone: 400-606-8888
Email: info@chijetmotors.com.

Frequently Asked Questions

What are the reasons behind the share issuance by Chijet?

The issuance is linked to contingent value rights and is part of Chijet's commitment to its shareholders, ensuring fair compensation based on company milestones.

How many ordinary shares are being issued?

Chijet is issuing a total of 640,850 ordinary shares to the holders of contingent value rights.

Who are the major shareholders involved in this process?

Euroamer Kaiwan Technology Company Limited and Chijet Holdings Limited are the two shareholders who surrendered their shares for cancellation.

What can CVR holders expect from this share issuance?

Each CVR holder is expected to receive approximately 0.492694 Ordinary Shares, rounded down to the nearest whole share in case of fractions.

How does this affect Chijet’s position in the automotive market?

This issuance strengthens shareholder relations and supports Chijet's growth strategy in the competitive automotive industry, particularly in the NEV sector.

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