EHang Holdings Limited (EHang), the United States-listed Chinese autonomous aerial vehicle (AAV) technology platform company, has raised a total of $23 million in private placement led by strategic South Korean investor Lee Soo Man.

EHwang said in a statement on Wednesday that the firm has entered into share subscription agreements with several strategic investors.

Lee is a renowned South Korean music producer, entrepreneur, and the founder of K-pop and SM Entertainment, a South Korean multinational entertainment company listed in KOSDAQ.

In addition to the private placement, EHang and Lee will collaborate to drive the development of Urban Air Mobility (UAM) business in Asian Pacific regions leveraging both’s complimentary strengths.

The gross proceeds from the placement will be allocated by EHang for working capital and general corporate purposes, enabling acceleration of strategic plans for technology advancement, business development and post-certification commercial operations.

This will further solidify EHang’s position as a leader in the global UAM industry.

EHwang will receive a deposit of 80 percent of the aggregate purchase price for the proposed placement from the investors in three business days.

The transaction is expected to close in the third quarter of 2023, subject to regulatory review and customary closing conditions.

“I was impressed by Lee’s interest and passion towards innovative technologies, future air mobility, and our autonomous aerial vehicles,

“We are thrilled to have long-term strategic investors and partners, such as Lee, who share the same values and commitment in our journey,” said Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer.

According to him, the placement and partnership are testaments to the trust and belief in EHang’s vision and prospects, propelling the company into its next phase of growth.

Lee also highlighted EHang’s unwavering dedication to enabling safe, autonomous and eco-friendly air mobility for the general public, as the first mover and a leading innovator in the emerging UAM industry with great potential.

“I’m excited to embrace opportunities and contribute to its growth through investing and collaborating with EHang as a long-term investor,

“I look forward to the convergence of cutting-edge transportation technologies and popular culture to create sustainable value, and I’m proud to be part of it,” he added.

EHang is an AAV technology platform company that aims to make safe, autonomous, and eco-friendly air mobility accessible to everyone.

The firm provides customers in various industries with AAV products and commercial solutions: urban air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions.

As the forerunner of cutting-edge AAV technologies and commercial solutions in the global UAM industry, EHang said it continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities.

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