LISHUI, China, July 17, 2017 /PRNewswire/ — Tantech Holdings Ltd. (NASDAQ: TANH), (“Tantech” or the “Company”), a leading alternative energy company through the use of bamboo-based charcoal products today announced it completed the acquisition of 70% equity interest in Suzhou E Motors Co., Ltd. (“Suzhou E Motors”), a specialty electric vehicles and power batteries manufacturer based in Zhangjiagang City, Jiangsu Province.
Acquiring 70% equity interest in Suzhou E Motors from Mr. Henglong Chen Broadening customer base and cross-selling opportunities Accelerating revenue and earnings growth Establishing Tantech Holdings as leader in environmental-friendly technology
Mr. Zhengyu Wang, Chairman and Chief Executive Officer of Tantech, commented, “We are pleased to complete this acquisition today, by acquiring 70% equity interest in Suzhou E Motors which will make us a leader in specialty EVs in China,”
Mr. Wang continued, “As discussed in our letter to shareholders on February 2017, improving the environment is the Company’s core mission. The acquisition brings economic synergies, new advanced technologies and accelerates our research and development efforts – resulting in what we believe will be tremendous value for the Company and its shareholders.”
Terms of Merger
Pursuant to the Purchase Agreement executed on May 2, 2016, Supplemental Agreement I signed on December 22, 2016 and Supplemental Agreement II signed on July 12, 2017, the Company shall acquire 70% equity interest of Suzhou E Motors directly from Mr. Henglong Chen with total cash consideration of RMB 103,200,000 (approximately $14.7 million) and a share consideration of 2,500,000 restricted shares of the Company’s common stock.
The Company had originally negotiated to acquire 100% of Suzhou E Motors’; however, following Suzhou E Motors’ minority shareholder, Zhangjiagang Jinke Venture Capital Co., Ltd. (Jinke Venture Capital), a local government-led VC fund, opted to retain its 30% interest as it believes the synergy between Tantech Holdings and Suzhou E Motors to be extremely promising.
The Company exercised such terms with the belief that it is in the best interests of its shareholders.
Suzhou E Motors – a leader in specialized electric vehicles
Since its inception in 2011, Suzhou E Motors has produced consecutive annual revenue growth of greater than 350%, reaching revenues of $12 million in 2015 compared to $2.7 million in 2014 and $0.85 million in 2013. Suzhou E Motors designs, assembles and distributes three types of electric vehicles:
Urban sanitary vehicles: Suzhou’s urban sanitary vehicles work at high