EAST
WINDSOR, N.J., Feb. 14,
2024 /PRNewswire/ -- Greenland Technologies Holding
Corporation (Nasdaq: GTEC) ("Greenland" or the "Company") today announced
that the Company's Board of Directors (the "Board") had approved a
spin-off of its drivetrain systems business, and approved a plan to
separate its electric industrial vehicles and drivetrain systems
segments into two independent, publicly-traded companies. The
Company expects to create these companies through a tax-free
spin-off of its drivetrain systems segment to the Greenland shareholders. There are no
guarantees the contemplated spin-off will occur or that it will
occur on the anticipated timeline given economic conditions and
changes in the financial markets.
The Board previously authorized a review of Greenland
Technologies' business portfolio and capital allocation options,
with the goal of enhancing shareholder value. As a result of this
review, the Board concluded that the separation of the drivetrain
systems business from the remainder of Greenland Technologies, as a
pure play, stand-alone company is the most attractive strategic
option for growth and enhancing shareholder value.
After the proposed spin-off, Greenland will be solely comprised of the
Company's current industrial electric vehicle business under its
HEVI brand. Under the Board-approved strategic plan, Greenland's existing drivetrain systems for
material handling machineries and vehicles would operate
post-spin-off as a separate, independently managed and publicly
traded company on the OTC market. Current Greenland shareholders will continue to own
and trade shares with no change. They will also receive a to be
determined allocation of shares in the new spin-off company
comprised of the non-industrial EV operations.
Raymond Wang, CEO of Greenland, commented, "Greenland has benefited financially,
strategically and operationally from our integrated business
structure. However, our success has not been appropriately
reflected in our share price due to concerns regarding the global
exposure of our business in an increasingly volatile geopolitical
environment. At this time, however, we have reached a critical mass
in our industrial electric vehicle business, following
the rebranding under the HEVI name. After careful review,
analysis and discussion, the Board believes the proposed new
strategic structure will best allow our teams to focus and to
further maximize the return on investment ("ROI") of our
investments given the expected growth of the industrial electric
vehicle market. We look forward to updating you as we make progress
on the spin-off and will provide additional details as we continue
to prioritize unlocking value for all shareholders."
About Greenland Technologies Holding Corporation
Greenland Technologies Holding Corporation (NASDAQ: GTEC) is a
developer and a manufacturer of drivetrain systems for material
handling machineries and electric vehicles, as well as electric
industrial vehicles. Information on the Company's clean industrial
heavy equipment division can be found at HEVI Corp.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking statements." Such statements reflect Greenland's current views with respect to
future events and are subject to such risks and uncertainties, many
of which are beyond the control of Greenland, including Greenland's ability to consummate the spin-off
as planned or on a timely basis, the risks that the combined
trading prices of independent companies created by the spin-off may
not be greater than or equal to the share price of Greenland prior to spin-off, and those set
forth in the Risk Factors section of Greenland's Annual Report on Form 10-K filed
with the U.S. Securities and Exchange Commission ("SEC"). Copies
are available on the SEC's website, www.sec.gov. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, Greenland's
expectations with respect to future performance. In addition, there
is uncertainty about the further spread of the COVID-19 virus or
the occurrence of another wave of cases and the impact it may have
on the Company's operations, the demand for the Company's products,
global supply chains and economic activity in general. Should one
or more of these risks or uncertainties materialize, or should
assumptions underlying the forward-looking statements prove
incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated or expected. Statements
contained in this news release regarding past trends or activities
should not be taken as a representation that such trends or
activities will continue in the future. Greenland does not intend and does not assume
any obligation to update these forward-looking statements, other
than as required by law.
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SOURCE Greenland Technologies Holding Corporation