Zero Run Motors plans to issue subscription shares to Stellantis and establish a joint venture company to expand its international layout.

Intelligent Finance News APP: Zero Run Auto has announced that on October 26, 2023, the company entered into a subscription agreement with Stellantis. According to the agreement, the company has conditionally agreed to issue and distribute 194 million H shares to Stellantis at a subscription price of HKD 43.8 per share. The subscription shares will be issued and distributed under general authorization. The total face value of the subscription shares is RMB 194 million, which is equivalent to approximately 21.07% and 17.40% of the total issued H shares and the enlarged issued H shares of the company as of the date of this announcement, respectively; and approximately 17.00% and 14.53% of the total issued shares and the enlarged issued shares of the company as of the date of this announcement, respectively. The subscription price represents a premium of 14.5% over the volume-weighted average price of the H shares for the 90 trading days prior to the subscription agreement date, and a premium over the average closing price of the H shares on the Stock Exchange of the five consecutive trading days immediately preceding the subscription agreement date. On October 26, 2023, the company entered into a joint venture agreement with Stellantis, which relates to the establishment of a joint venture company between the company and Stellantis. After the establishment of the joint venture company, the company and Stellantis will respectively hold 49% and 51% equity interests in the joint venture company. The joint venture company will become a consolidated subsidiary of Stellantis. The company proposes to enter into an exclusive license agreement and a product sales framework agreement with the joint venture company.