MingZhu Logistics Holdings Stock (YGMZ): Why The Price Surged Today

By Amit Chowdhry ● Dec 29, 2021
  • The stock price of MingZhu Logistics Holdings Ltd (NASDAQ: YGMZ) increased by over 40% pre-market today. This is why it happened.

The stock price of MingZhu Logistics Holdings Ltd (NASDAQ: YGMZ) – a leading trucking service provider – increased by over 40% pre-market today. Investors are responding positively to MingZhu Logistics announcing that it entered into a Share Purchase Agreement (SPA) on December 29, 2021 to acquire 100% of the equity interest of Cheyi (BVI) Limited, which operates its business through its subsidiary Zhejiang CheYi Network Technology Co., Ltd., an integrated online car-hailing and driver management services company. 

Pursuant to the deal, the total consideration for the acquisition of 100% equity ownership of Cheyi BVI is an aggregate of U.S. $29,466,032, consisting of the issuance by the company to the shareholders of Cheyi BVI an aggregate of 3,189,000 fully paid company’s ordinary shares (being U.S. $12,756,000 of $4 per share) and payment of $2 million at closing, and Year-2021 earnout payment of U.S. $8,826,019 and Year-2022 earnout payment of U.S. $5,884,013 if the Cheyi BVI’s audited net income for its fiscal year 2021 and 2022 is no less than U.S. $3 million respectively. And the two earnout payments are due 13 months upon the delivery of Cheyi BVI’s audited financial statements. The parties plan to close the transaction by December 31, 2021. The acquisition is expected to offer MingZhu’s customers additional platform enhancements, and directly fits with MingZhu’s acquisition strategy, which includes adding financially accretive, best-of-breed companies and products.

CheYi Network launched in December 2015 as a comprehensive automobile service platform, providing a full range of services to the automotive industry. And CheYi Network has built an integrated business platform with more than 6,000 vehicles and drivers for ride-hailing services under management. Its vehicles and drivers provide services to major mobility technology platforms, such as SAIC Mobility and T3 Mobility.


“We are excited to have CheYi Network now part of the MingZhu team. The company is a perfect fit and brings an impressive integrated platform featuring all the support and services drivers need. This immediately broadens our portfolio and will serve as a centerpiece of our continued diversification strategy. Our priority remains unchanged. We are focused on accelerating our growth strategy by strategically deploying capital in both organic and inorganic opportunities, as we unlock MingZhu’s potential and greater value for shareholders.”

— Jinlong Yang, Chairman and Chief Executive Officer of MingZhu Logistics Holdings Limited

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.