NEW YORK, April 6, 2020 /PRNewswire/ -- Ideanomics,
(NASDAQ: IDEX) ("Ideanomics" or the "Company"), is pleased to
announce that the Qingdao City Construction Investment Group
Limited (QCCIG) has entered into framework strategic
cooperation agreement with Sun Seven Stars Investment Group Limited
(SSSIG)1 to raise up to RMB
50 Billion (USD 7 Billion)
fund to finance investment projects in Qingdao and Shandong
Province. The required funds are provisionally committed by
insurance companies, subject to a two- to three-month
administrative process, and is part of a fundraising initiative
which has been underway since Q4 of 2019.
Approximately 20% of the new fund will be earmarked to finance
the purchase of electric vehicles (EVs) to replace existing
gas-powered fleets in Shandong
province. The fund will sign an agreement with Ideanomics' MEG
Group once it is fully formed and the funds are in place to provide
MEG financing for EVs. MEG, based on its S2F2C (Sales to Financing
to Charging) model will be the beneficiary of these funds through
EV sales, leasing and financing services, and charging-related
energy sales.
QCCIG is the premier investment arm of the city of Qingdao. Qingdao, based on GDP, is the largest city in
Shandong Province with a GDP of
RMB 1.2 Trillion (USD 170 Billion) as of December 2018, equivalent to countries such as
Greece, New Zealand, and Qatar. The agreement is a three-year
collaboration between QCCIG and SSSIG, and is designed to
strengthen the relationship between industry, innovation, and
capital, to help elevate the overall economic development of
Qingdao.
Under the terms of the agreement, QCCIG will provide financial
support for the establishment of the funds, in addition to various
policy and project resources. SSSIG will provide industry expertise
in investments and capital markets to raise funds for various
projects and commercial initiatives in Qingdao. SSSIG, which is Ideanomics largest
shareholder, will raise up to RMB 50
Billion (approx. USD 7
billion) for QCCIG from financial partners including,
but not limited to, insurance companies (China Life, PICC,
China Ping An, China Pacific, Pacific Insurance, New China Life
Insurance, Taikang Insurance (Asset Management), etc. ), as well as
other central enterprises and institutions. QCCIG's AAA-rated
investment will guarantee the principle of the investment by the
insurance companies and other institutions.
As a reminder, MEG's 5-Level Business Model Matrix for China is
comprised of 1) Fleet Financing Fund Alliance 2) Umbrella Sales
Alliance 3) Battery & Manufacturers Alliance 4) Operating
Partners Alliance and 5) Energy Sales Alliance. This strategic
cooperation agreement is the first in a series of several
fundraising agreements for Level 1 – Fleet Financing Alliance,
which is designed to solve the fleet financing hurdles. These
funds may be used to help fleet operators receive the necessary
financing and loans to replace fleets of hundreds and thousands of
gas-powered vehicles with EVs. Over the course of the year, SSSIG's
goal is to sign between three and six similar deals with 20% to 30%
of the funds being allocated to MEG for fleet financing. The timing
of closing these future deals may vary due to current travel
restrictions.
"The additional funds to support fleet operator sales of
commercial electric vehicles in Qingdao solves one of the largest hurdles to
commercial EV conversion, large-scale EV purchases," said
Ideanomics CEO Alf Poor. "Innovative
financing programs are a key component in enabling these EV sales,
and the funds may further extend our ability to finance purchases
that would otherwise not be possible for commercial fleet
operators. The ability to secure competitive financing enables a
faster transition over to EV, which in turn unlocks further
substantial savings in both fuel and maintenance costs, as well as
eliminating the fossil fuel emissions which are damaging to the
environment."
The fund formed by SSSIG and QCCI to replace EV fleets in
Qingdao and Shandong Province are separate from the
activities of the upcoming Mobile Energy Group Center in
Qingdao. The Mobile Energy Group
Center falls under MEG's Business Division #2, Qingdao Vehicle
Sales Center & National Network. While both include EVs sales,
the new fund managed by SSSIG and backed by QCCI will source
vehicles through direct channels, rather than through the Mobile
Energy Group Center.
About Ideanomics
Ideanomics is a global company
focused on facilitating the adoption of commercial electric
vehicles and developing next generation financial services and
Fintech products. Its electric vehicle division, Mobile Energy
Global (MEG) provides group purchasing discounts on commercial
electric vehicles, EV batteries and electricity as well as
financing and charging solutions. Ideanomics Capital includes DBOT
ATS and Intelligenta which provide innovative financial services
solutions powered by AI and blockchain. MEG and Ideanomics Capital
provide our global customers and partners with better efficiencies
and technologies and greater access to global markets.
The company is headquartered in New
York, NY, and has offices in Beijing, China.
Safe Harbor Statement
This press release contains
certain statements that may include "forward looking statements".
All statements other than statements of historical fact included
herein are "forward-looking statements." These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involve known and unknown risks and uncertainties, and include
statements regarding our intention to transition our business model
to become a next-generation financial technology company, our
business strategy and planned product offerings, our intention to
phase out our oil trading and consumer electronics businesses, and
potential future financial results. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of risks and uncertainties, such as risks related to: our
ability to continue as a going concern; our ability to raise
additional financing to meet our business requirements; the
transformation of our business model; fluctuations in our operating
results; strain to our personnel management, financial systems and
other resources as we grow our business; our ability to attract and
retain key employees and senior management; competitive pressure;
our international operations; and other risks and uncertainties
disclosed under the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our most recent Form 10-K and Form 10-Q
filed with the Securities and Exchange Commission, and similar
disclosures in subsequent reports filed with the SEC, which are
available on the SEC website at www.sec.gov.. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these risk
factors. Other than as required under the securities laws, the
Company does not assume a duty to update these forward-looking
statements.
Investor Relations and Media Contact
Tony Sklar, VP of Communications at
Ideanomics
55 Broadway, 19th Floor New York, New
York 10006
Email: ir@ideanomics.com
www.ideanomics.com
Tel: +1.212.206.1216
1 Sun Seven Stars Investment Group (SSSIG) is the
largest shareholder in Ideanomics and is controlled by Dr.
Bruno Wu and his wife.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/qingdao-city-construction-investment-group-limited-enters-into-framework-strategic-cooperation-agreement-with-sun-seven-stars-investment-group-limited-to-raise-a-fund-to-finance-ev-sales-in-qingdao-and-shandong-province-301035627.html
SOURCE Ideanomics