Dazhi Technology to raise 1 billion yuan for a 2.4GWh EV battery project

SHANGHAI, May 7 (SMM) – Shenzhen-listed Dazhi Technology said Wednesday that it plans to issue no more than 31.68 million new ordinary shares to raise approximately 1.07 billion yuan to build a lithium-ion power battery project in South-central China’s Hunan province.

All the raised funds will be invested in the construction and R&D of the project, which is expected to produce 2.4GWh of lithium-ion batteries for electric vehicles, energy storage and other sectors per annum.

The new shares, not exceeding 30% of the total share capital of the company prior to the non-public issuance, will be issued to no more than 35 targeted subscribers, including Hunan-based Hengling Power who will subscribe no less than 400 million yuan.

Living Power, a Chinese battery maker led by WM Motor CEO Freeman Shen, in September 2019 acquired a 16.7% stake in Dazhi Technology with 513 million yuan.