NIO Announces Investment Support from CYVN Holdings

Shanghai (Gasgoo)- NIO Inc., a Chinese pioneer in the premium smart electric vehicle market, today reached a share subscription agreement with its principal investment company, CYVN Holdings LLC (“Investor” or “CYVN Holdings”). announced that it did. The Abu Dhabi government is focused on advanced smart mobility.

Under the terms of the agreement, investors will invest a total of US$738.5 million in cash to subscribe to 84,695,543 newly issued Class A common shares of NIO at a purchase price of US$8.72 per share. This price represents the volume-weighted average price of Class A common stock on the New York Stock Exchange for seven consecutive business days ending June 19, 2023 (the “Investment Trade”).

NIO ET5; photo credit: NIO

The investment transaction is subject to customary closing conditions and is expected to close in early July 2023. As part of the agreement, the investor promised not to sell, transfer or dispose of the shares acquired in the investment transaction for a period of time. The term is 6 months after closing.

Meanwhile, NIO said it is aware that investors have entered into share purchase agreements with Tencent affiliates, whereby investors will purchase 40,137,614 shares of NIO’s Class A common stock owned by affiliates. (“Secondary share transfer”). Upon completion of both the investment transaction and the secondary share transfer, investors will own approximately 7.0% of NIO’s total outstanding shares.

Upon or after the consummation of the investment transaction, the investor will have the right to appoint one director to NIO’s board of directors so long as they maintain beneficial ownership of at least 5% of NIO’s issued share capital.

In addition, NIO and the investors have agreed to work together to pursue NIO’s international business opportunities after the completion of the investment transaction.