Shenzhou Car Rental Subscription For Wulong Electric Vehicle New Shares And Convertible Debt Memorandum Failure

August 11th, Shenzhou renting recently announced that the company and Wulong electric vehicles in August 10, 2019 or before and no formal agreement will not be concluded. As a result, the memorandum of understanding and supplementary memorandum of understanding were automatically invalidated in August 10, 2019 and no longer have any effect. However, despite the failure of the memorandum of understanding (MOU), the two sides are likely to subscribe to the Target Corp stock agreement agreement on strategic objectives.

According to the media, Shenzhou car rental is a memorandum of understanding signed with Wulong electric vehicle in July 11th last year. It intends to subscribe for 9 billion shares of Wulong, which is about 22% of the total issued share capital of Target Corp, and the provisional subscription price is HK $0.06. Meanwhile, Shenzhou car rental will also subscribe to 600 million Hong Kong dollar convertible bonds of Wulong electric vehicle. If the debt to equity swap is completed, the share will expand from 22% to 37%.

However, there has been no new progress in the subscription. Shenzhou renting two has extended the deadline for subscription of new shares and convertible bonds of Wulong electric vehicle. Shenzhou renting announced in March that the final deadline for new proposals will be postponed to May 10, 2019. Subsequently, in May 10th, it made further supplementary memorandums of understanding with Wulong to extend the final deadline for concluding formal agreements to August 10, 2019.