TD Holdings, Inc. (NASDAQ: GLG), a commodities trading service provider in China, today announced that it has entered into a non-binding letter of intent (the “LOI“) with Guangdong Jinbochuang Special Purpose Vehicle Co., Ltd. and (“Jinbochuang“) and Hunan Jinmeike New Material Co., Ltd. (“Jinmeike“) and their shareholders to acquire both Jinbochuang and Jinmeike to step into the unmanned logistics and new energy vehicle industry.
Pursuant to the LOI, the Company agreed to acquire 100% of the equity interests of Jinbochuang and Jinmeike in exchange for certain amount of shares of common stock of the Company be determined based on the Company’s due diligence and the parties negotiation. Management expects the acquisition will complete within 180 days from the date of the LOI assuming satisfactory due diligence and the parties can enter into definitive agreement. Either party to the LOI may terminate the LOI unilaterally. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.
Ms. Renmei Ouyang, the Chief Executive Officer commented, “Over the past decade, we mainly focused on large-scale business transactions including non-ferrous metals trading and supply chain services which are inseparable from warehousing and logistics. The planned acquisition of Jinbochuang and Jinmeike is not only in line with our growth strategy of improving our industrial chain, but also corresponds to the national strategy of ‘Made in China 2025′ and the industry trend of manufacturing lightweight vehicles. We expect to incorporate lightweight new materials, applications and lightweight trucks into our global industry chain. Through leveraging the advantages of Jinbochuang’s experience in new energy vehicle industry and Jinmeike’s expertise in unmanned logistics, we strive to optimize our business.”
Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share exchange agreement, satisfaction of the conditions negotiated therein including the approval of the Company’s Board of Directors, approval by Nasdaq of the listing of shares issued in the transaction, and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com.