Jiuzi Holdings Agrees To Acquire Shenzhen Maigesong In A Stock Deal; Stock Falls

(RTTNews) - Jiuzi Holdings, Inc. (JZXN) announced that its subsidiary Shenzhen Jiuzi New Energy Holding Group Co., Ltd. has entered into a non-binding letter of intent for the acquisition of Shenzhen Maigesong Electric Technology Co., Ltd. in a stock deal.

Under the terms of agreement, Shenzhen Maigesong shall achieve a revenue target of RMB 119.81 million by the end of December 2025, and a revenue target of RMB 504.22 million by the end of December 2026.

In case, Shenzhen Maigesong fails to achieve 80 percent of the revenue target, then the revenue gap will be compensated by the company's shareholders with their held shares.

The new energy vehicle dealership group further stated that Shenzhen Jiuzi will invest 30 million yuan for the construction of Shenzhen Maigesong's rechargeable lithium battery production line after the completion of acquisition.

Currently, Jiuzi's stock is falling 16.67 percent, to $3.14 on the Nasdaq.