Jiuzi Holdings, Inc., also known as JZXN, has disclosed that its subsidiary, Shenzhen Jiuzi New Energy Holding Group Co., Ltd., has penned a non-binding letter of intent to acquire Shenzhen Maigesong Electric Technology Co., Ltd. through a stock transaction.
According to the terms of the agreement, Shenzhen Maigesong is set to achieve a revenue target of RMB 119.81 million by the end of December 2025, and a subsequent target of RMB 504.22 million by the end of December 2026.
If Shenzhen Maigesong doesn't meet at least 80 percent of this revenue target, then the deficit will need to be compensated for by the company's shareholders using their held shares.
Furthermore, following completion of the acquisition, the new energy vehicle dealership group, Shenzhen Jiuzi, will invest 30 million yuan into developing Shenzhen Maigesong's rechargeable lithium battery production line.
Currently, shares of Jiuzi on the Nasdaq are down 16.67 percent, trading at $3.14.
