HIGHWAY HOLDINGS Signs LOI for Majority-Owned Energy Storage JV
Highway Holdings Limited announced it has signed a letter of intent (LOI) with Guangdong Huahu New Energy Technology Co., Ltd. to form a majority-owned energy storage joint venture. The proposed venture, tentatively named Huahu International New Energy Technology Company Limited, will be 57% owned by Highway Holdings, which will contribute $2.0 million in cash. This strategic cooperation aims to combine Huahu's energy storage technology with Highway Holdings' global manufacturing and commercial platform, targeting markets in Europe, the United States, and South America. The agreement includes provisions for restricted share issuances to Huahu based on milestone achievements and component business, aiming to improve utilization of Highway Holdings' manufacturing operations and diversify its business.
Key Highlights
- Highway Holdings signed an LOI for a majority-owned energy storage joint venture with Huahu.
- The proposed venture, Huahu International New Energy Technology, will be 57% owned by Highway Holdings.
- Highway Holdings will contribute $2.0 million in cash; Huahu will contribute $1.5 million in products and technology.
- Huahu grants exclusive SKD manufacturing, marketing, and distribution rights for Germany, Italy, US, and parts of South America.
- Highway Holdings will issue up to 400,000 restricted shares to Huahu upon achieving certain milestones.
- Additional restricted shares (up to 500,000) will be issued for component business provided by Huahu.
- An additional 100,000 restricted shares will be issued if Huahu provides SKD business to the Myanmar factory.
- The parties aim to sign definitive agreements within approximately one month.
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