In after-hours trading on Monday, shares of the leading nationwide online used car dealer in China Uxin Limited (UXIN) appreciated 9.23% to $3.67. UXIN finished the last trading session at $3.36, down by -2.89%. Shares of UXIN traded between $3.32 and $3.50 during the session.
UXIN traded 1.87 million shares, less than its daily average of 14.59 million shares over the past 100 days. In the past five days, UXIN shares have fallen -8.45% while in the last month, they have dropped -31.15%. On the news of the first tranche closing of UXIN’s financing transaction, UXIN stock gained traction.
How did UXIN complete the transaction?
Uxin Limited is one of China’s leading online used car dealers. The mission of UXIN is to help people acquire the car of their dreams online by offering high-quality used cars and top-of-the-line purchasing services. Through UXIN’s one-stop online shopping mall, consumers can browse a wide selection of used cars with value-for-money, shop for products and services that add value as well as receive comprehensive aftersales services.
At UXIN, online sales consultants provide professional assistance to customers so they can make an informed and timely decision about their cars. For these online transactions, UXIN’s comprehensive fulfillment network supports nationwide delivery and logistics, as well as title transfers across China’s different cities.
On Monday, Uxin Limited announced that the initial tranche of its US$315 million financing transaction was closed.
- UXIN has issued 291,290,416 senior convertible preferred shares as part of the financing transaction.
- In total, 97,096,805 American Depositary Shares (ADS) of UXIN will be issued.
- NIO Capital and Joy Capital purchased the shares for a combined purchase of US$100 million from UXIN.
- com, TPG, and Warburg Pincus are among the holders of UXIN’s convertible notes who have converted them for an aggregate principal amount of US$69 million.
- As a result, the notes were converted into 66,990,291 ordinary shares of UXIN, which corresponds to 22,330,097 ADSs.
- A group of more than ten investors, including major players NIO Capital, Joy Capital, as well as those who hold convertible notes, have agreed not to sell their UXIN shares for a period of nine months beginning July 12, 2021.
- The agreed-upon terms and conditions will govern the closing of the remaining tranches.
UXIN announces changes to its Board of Directors:
As stipulated in the agreements, UXIN also announced changes to its Board of Directors. On July 12, 2021, Dr. Zhuang Yang and Mr. Cheng Lu were appointed as independent directors of the UXIN Board while Mr. William Bin Li and Mr. Erhai Liu have joined UXIN Board as directors. The members who resigned from the UXIN Board of Directors include Qiang Chang Sun, Muyuan Wang, Yong Zhong Huang, Cheng Cheung Lun Julian, Lin Cong, and Shun Lam Steven Tang.