JINHUA, China, June 26, 2013 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (Nasdaq:KNDI) (the 'Company' or 'Kandi'), a leading Electric Vehicle (EV) company in China, today announced that it has entered into a securities purchase agreement with two institutional investors for a registered direct placement of approximately $26.3 million of common stock at a price of $6.03 per share. The Company will issue a total of 4,376,036 shares to the institutional investors. As part of the transaction, the Company will also issue to the investors Series A Warrants for the purchase of up to 1,750,415 shares of common stock at an exercise price of $7.24 per share, which warrants have a term of 30 months from the date of issuance. In addition, the investors will have a 60-day option to purchase up to 728,936 shares of common stock at $7.24 per share, starting six months from the closing date on the same terms as the original investment.
The net proceeds from this offering will be used for general working capital purposes. The completion of the placement is expected to occur on or about July 1, 2013, subject to the satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement related to the offering will be filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.