Lingyi iTech advances convertible bond & asset purchase plan

Lingyi iTech (SZSE:002600) announced an update on its proposed issuance of convertible corporate bonds and cash payment to acquire assets, initially disclosed on December 7, 2024. The plan involves purchasing a 66.46% stake in Jiangsu Kedstar Automotive Technology Co., Ltd. from eight counterparties. Upon completion, Jiangsu Kedstar will become Lingyi iTech's controlling subsidiary. The company plans to raise supporting funds through a private placement of shares to no more than 35 specific investors, not exceeding 30% of the company's total share capital. These funds will cover the cash consideration for the acquisition, related expenses, and potentially capital expenditure and working capital needs for Jiangsu Kedstar. The company is actively advancing the deal, with audit, valuation, and profit forecast work underway. Further board and shareholder approvals are pending. The company cautioned investors about potential risks and uncertainties associated with the transaction.