Evergrande New Energy Vehicle’s Deal with NWTN Invalid Due to Deadlock

Summary

  • Due to disagreements on extending the long stop date into the end of 2023, Evergrande New Energy Vehicle announced that the share and loan conversion subscription agreement by NWTN has been invalidated.
  • Back in August, it was announced that the electric vehicle subsidiary was to issue 6.18 billion new shares to NWTN, a Dubai-based mobility company, for a recorded total of HK$3.89 billion ($498.2 million).
  • The current exchange rate is ($1 = 7.8086 Hong Kong dollars).

Extension Disagreement Invalidates Agreement

Evergrande New Energy Vehicle has announced that due to disagreement on the extension of the long stop date – the last date of 2023 – the share subscription and loan conversion subscription agreements with NWTN are no longer valid.

Previous Arrangements

Previously, in an announcement made in August, the electric vehicle company had made plans to issue 6.18 billion new shares to NWTN, a Dubai-based mobility firm. The total value of this transaction was supposed to be HK$3.89 billion, which translates to $498.2 million using current exchange rates.

The current exchange rate is around $1 to 7.8086 Hong Kong dollars.

The implications of this deal for the financial markets, particularly forex trading, could potentially be significant. The fallout could influence the valuation of related assets, underlining the intricate ties between large-scale business decisions and the world of trading.

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